Another possible breakout move which can be quite clearly seen on the chart. We are looking for a break above the trend line, then a pullback to follow which will allow us to get better entry placement.
Confluence points for this trade -
1. Bullish divergence on the RSI since July.
2. Bullish divergence on the MACD also since July where we have seen evidence of relative selling pressure decreasing and therefore an indication that perhaps the bulls have returned to the market.
3. A major support level confirmed at 99.776 on the chart.
We must confirm our trade by witnessing a breakout, then waiting for a pullback before we can enter to confirm the trade.
The point at which all of these lines meet in the bottom right looks to be a very interesting area if the pair gets that far.
As always if the rules are not met the trade will not be taken.
A key thing to remember is that at the time of writing the Dollar isn't particularly strong with speculation surrounding a rate hike in December, which will inevitably weaken it, as well as serious uncertainty around the US election. I would prefer not to trade the news as it screws technicals up, but it must be considered when taking trades. Trade with care.
Confluence points for this trade -
1. Bullish divergence on the RSI since July.
2. Bullish divergence on the MACD also since July where we have seen evidence of relative selling pressure decreasing and therefore an indication that perhaps the bulls have returned to the market.
3. A major support level confirmed at 99.776 on the chart.
We must confirm our trade by witnessing a breakout, then waiting for a pullback before we can enter to confirm the trade.
The point at which all of these lines meet in the bottom right looks to be a very interesting area if the pair gets that far.
As always if the rules are not met the trade will not be taken.
A key thing to remember is that at the time of writing the Dollar isn't particularly strong with speculation surrounding a rate hike in December, which will inevitably weaken it, as well as serious uncertainty around the US election. I would prefer not to trade the news as it screws technicals up, but it must be considered when taking trades. Trade with care.
This will enable a better entry position for us closer to support to give us confidence that our stop loss will not be hit.
It will also maximise our profit taking ability from this trade as the entry point will be further from the subsequent high.