Long term trend: Up
Medium term trend: Up
Significant levels: 105.30 (Horizontal Resistance), 100.00 (Significant Round Number), Uptrend Support and Uptrend Resistance
After a period of consolidation, this currency pair is now forming an uptrend. The price broke above a significant level which is the Horizontal Resistance at the 105.30 level. As can be seen in the Daily chart above, before the Resistance was broken, there is a bit of consolidation which indicated that the market still respects this area. It would be a good opportunity to go Long near the 105.30 level if it holds as a Support.
Currently, the market is again forming a bit of a consolidation for 3-4 days now. Although we cannot find a Horizontal Resistance on this chart, the market is reacting on the Uptrend Resistance. I would prefer if the market goes back down to the 105.30 level instead of breaking above this Uptrend Resistance. In that way, we could place our Long trade at a lower price. Anything is possible so the break above the Uptrend Resistance might happen, but that would be another story. It might be a false break because it is more probable that the market will make a retracement. Note that the price is in a range previously, and this breakout and new trend cannot be sustained for long. Retracements will always be present and that is what we're looking for to happen here.
It is also worth noting that these Uptrend Support and Resistance are treated as a Rising Wedge pattern. Although this pattern has a long way before it can be completed (maybe 4-6 months from now), it may be useful in the long run.
Clearly, as of now, there's still no trade for us to place. Going Short is not a good idea (even if we're looking for a retracement). Be patient.
Trade well.
Medium term trend: Up
Significant levels: 105.30 (Horizontal Resistance), 100.00 (Significant Round Number), Uptrend Support and Uptrend Resistance
After a period of consolidation, this currency pair is now forming an uptrend. The price broke above a significant level which is the Horizontal Resistance at the 105.30 level. As can be seen in the Daily chart above, before the Resistance was broken, there is a bit of consolidation which indicated that the market still respects this area. It would be a good opportunity to go Long near the 105.30 level if it holds as a Support.
Currently, the market is again forming a bit of a consolidation for 3-4 days now. Although we cannot find a Horizontal Resistance on this chart, the market is reacting on the Uptrend Resistance. I would prefer if the market goes back down to the 105.30 level instead of breaking above this Uptrend Resistance. In that way, we could place our Long trade at a lower price. Anything is possible so the break above the Uptrend Resistance might happen, but that would be another story. It might be a false break because it is more probable that the market will make a retracement. Note that the price is in a range previously, and this breakout and new trend cannot be sustained for long. Retracements will always be present and that is what we're looking for to happen here.
It is also worth noting that these Uptrend Support and Resistance are treated as a Rising Wedge pattern. Although this pattern has a long way before it can be completed (maybe 4-6 months from now), it may be useful in the long run.
Clearly, as of now, there's still no trade for us to place. Going Short is not a good idea (even if we're looking for a retracement). Be patient.
Trade well.