In our last chart we achieved our upside target, though I did not trade long as I indicated I have never traded this pair. However, due to the chart formation with what I think is rising wedge
formation, ie Ending Diagonal
that lines up with declining long term trendline
, at fib ration confluence and with my view on Dollar index
published little while ago - chart link I feel that this short set up looks excellent for long term swing or position trade. This was an ABC
correction to the upside hence longer term down trend will re-exert. There for whilst the ride is not going to be without some retracement along the way, I anticipate that the last major low at 6.5 level will be retested or a new lower formed. The only question remains is that how do you enter? I have already entered on minor pull back on intraday @ 9.05 with limit order and stop just above the high. However more conservative entry would be wait for reasonable retracement in the form of minor abc
with usual Fib percentage which should confirm that the trend in deed is to the downside. Friend who initially asked me to do original chart also pointed out that in addition to the capital gain we could expect interest carry trade benefit too. So I am looking forward to experiencing profitable trade. Hope you will consider it at least from Technical charting perspective which is not really taking in to account any fundamental issues of either of the countries.