Watch the interaction of price action as it approaches to pink box. The rejection from the with trend-line will send the the price price to next target at 88XXs. A stop loss, entry and takeprofit ide are shown in the chart
Once the price action traded above 1.1008, enter on the intra day, and the the pair long to the defined targets. The period between two minimums takes between 36-48 days. we are in 38th days now and I expect resumption of the bullish trend any time from now, unless the price trades below 1.09098 support level (shown with yellow arrows).
The RSI is approaching...
Reasons to enter this trade
i) Negative bullish divergence RSI
ii) Price at lower trend-line
iii) Confluence of the trend-line with Support at 1.105
A buy stop order at few pips above 1.1087, with a stop loss below 1.10963, targeting a profit at 1.15.
i) The candle on 06/11/2014 made the high of this move.
ii) The candle on 12/11/2014 closed below the low of the candle in (i).
iii) This reverse candle formation appeared right at the bottom of the Kumo Cloud, which typically acts as a Resistance area.
iv) A re test of the previous low is expected at 8406.
v) the dashed pink lines are the immediate support...
Belt holds (Previous week Candle) are often important pivotal candles, since high and low occasionally act as support and resistance areas in subsequent price action. The halfway point of the real body (in the current case ~96.70) of a belt hold also should be monitored for a possible price reversal during a price swing.
i) This week an indecisive Spinning top...
i) Rejection from 200 EMA and 50% Fibbonacci retracement line on the daily time frame in the form of an umbrella line
ii) Kumo bearish twist on 6H time frame
iii) Rejection from the baseline
iv) Lagging span below price action.
They indicate a medium risk short trade on this pair, as
i) the price action is still in the cloud on this time frame.
Look for Significant reversal bar at late Monday, early Tuesday, The price action then should takes off to upside. Test of the previous high would be the first target.
There is a chance of short opportunity if the price does not break above and close above the previous High. as demonstrated here,
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