Both technical and macro-economical analyzes (China stats underperform) are predicting a spike on that currency pair.
Trader waited to finally have a good signal on which way the price will drive. It looks we had, as i tought last week, a nice busted pattern in the making (see: thepatternsite.com/BustSymTriangles.html ). Busted patterns are more powerfull than a regular breakout as it takes everybody by surprise. Which explains a lot the huge spike we have right now. Unfortunatelly I wanted to write this idea 12H ago and missed a bit the power of the analyze.
On your left:
You can grasp the highly dynamic medium term move we are witnessing and why the fake breakout was quite important as we were right on the edge of a fibonacci retracement (50%).
On you right:
You can see the details of the busted pattern and weigh the significant impulsion we had today. Making the 4H ichimoku perfectly bullish.
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Strategy:
* Get long on throwback between 6.17 and 6.147, don't hesitate to have a small market order as well. * Stop loss under the low (right) around 6.128. * Target is 3 to 4% higher to last 2013 high around 6.4. On a shorter timeframe, 6.21 is a better target.
Currency pair took a hit and things are settle down a bit.