Very similar idea to my EURTRY idea posted yesterday. You can find the link in this post.
The price is hitting an ascending trendline (green) dating from February. That is a very strong support. It is also supported by the fact that it is a double bottom and we are seeing bullish signals. RSI confirms this view with a bullish divergence and the pair is very close to an important area of horizontal support and MA200.
All that makes me think that price will rebound to the next resistance at 5.812 where it will face resistance by MA50 too.
The problem I see in this pair is the 4H chart:
First thing we see is that the price action is not very clean and that always concerns me a little bit. We also see that the price is below the MA50 and below the descending trendline (green line) that is pretty much following the MA200. That is a lot of resistance and if we wait to see if it breaks them it will probably be too late to enter the trade as we will be approaching a horizontal level.
So what do we do???
We can stay in the sidelines or we can buy at the actual price level (supposing there is no gap on Monday) and place a SL at around 5.589. This level is important because it would mean that the price broke below the ascending trendline and that it broke the closing price of the lowest point on the 5th of July.
This is a risky trade but what is life without risk and excitement!
Trade safe and share your views in the comments below!
The price is hitting an ascending trendline (green) dating from February. That is a very strong support. It is also supported by the fact that it is a double bottom and we are seeing bullish signals. RSI confirms this view with a bullish divergence and the pair is very close to an important area of horizontal support and MA200.
All that makes me think that price will rebound to the next resistance at 5.812 where it will face resistance by MA50 too.
The problem I see in this pair is the 4H chart:
So what do we do???
We can stay in the sidelines or we can buy at the actual price level (supposing there is no gap on Monday) and place a SL at around 5.589. This level is important because it would mean that the price broke below the ascending trendline and that it broke the closing price of the lowest point on the 5th of July.
This is a risky trade but what is life without risk and excitement!
Trade safe and share your views in the comments below!
