The daily timeframe is showing a battle that the Bulls are interestingly in charge of. The reversal proved a strong price rejection at the support zone at 105.987.
The Bulls continued on a neat uptrend, with higher highs and higher lows. The Bears came to the party at the area of interest forming a good resistance zone at the 107.939 price level worthy of being respected after 3 times where Bears where not allowing Bulls to overpower them. This area is increasingly being tested with higher lows forming. The Bulls are also not allowing the bears below the 0.382 Fib retracement level.
We are seeing an area between new resistance and support where Bulls & Bears are on a stalemate. However zooming back out and focusing on the Major support at 105.982 where the downward trend turned and the recent high of 107.939 we can clearly see an ascending triangle bullish signal formation.
We are clearly looking at a potential break sooner or later and this trend continues.
Switching onto the 4 hour timeframe we can see the back and forth tug of war between the bulls & bears, we are looking at a potential long position entry above the resistance zone at 108.000 and because we will always adapt to market behavior we will also play a short position which we look to enter below the support at.
The basis of this idea is to manage the move as it develops, due to the fact that it seems as if both parties are currently at a stalemate on the 4hour timeframe with more price rejection at the support zone and the ascending triangle formation on the daily view.
Lets keep monitoring this pair until we get a clear indication on direction.
The Bulls continued on a neat uptrend, with higher highs and higher lows. The Bears came to the party at the area of interest forming a good resistance zone at the 107.939 price level worthy of being respected after 3 times where Bears where not allowing Bulls to overpower them. This area is increasingly being tested with higher lows forming. The Bulls are also not allowing the bears below the 0.382 Fib retracement level.
We are seeing an area between new resistance and support where Bulls & Bears are on a stalemate. However zooming back out and focusing on the Major support at 105.982 where the downward trend turned and the recent high of 107.939 we can clearly see an ascending triangle bullish signal formation.
We are clearly looking at a potential break sooner or later and this trend continues.
The basis of this idea is to manage the move as it develops, due to the fact that it seems as if both parties are currently at a stalemate on the 4hour timeframe with more price rejection at the support zone and the ascending triangle formation on the daily view.
Lets keep monitoring this pair until we get a clear indication on direction.