After a strong sell and break of the short term trend and two legs to a new swing high look for prices to fail on one more attempt to break higher and ride prices back down to the low of the major down trend channel or minor range support.
After A Failed break lower and two more attempts to break through the strong support area I think price will look to test a few previous highs and pull back to test either the minor or major down trend lines.
With this consistent Higher Highs and Lower Highs I believe the down trend is over that started back in early late October - November and lasted up until the end of December, also the length of that downtrend should give this upswing some nice juice.
Not exactly 2:1 (1.73) but I think it would be best to pop a nice high probability chance and get out of any USD...
If the channel continues to hold backed up by the bearish sentiment from the cloud we could see a new swing low depending how things go Friday with Trump championing increased infostrucutre and cutting taxes compounded by interest rate hikes but also wanting a weaker dollar, tread lightly traders.
Price has been between 0.8300 - 0.9100 range since early July 2016.
At the middle of the this range, I am waiting for price to break the 0.8800 level before entering long to ride this pair back to the top of the range.
With bullish sentiment from the cloud and a hard Brexit looming I think these factors will give this pair the strength to break the middle...
Probability of the continued down trend possible with this pair. Look for price to break the support level and continue to the support of the down channel. Bearish sentiment from the cloud and bearish movement from price I think this will be a good short trade.
Price is still showing respect to the Support/Trend line. Price should begin its climb back to the resistance line/high.
1.3400 good first target and place to re-evaluate if the upward move will continue.
Cause my bearish candles are black get it?!?!?! (and yes I listened to Metallica as I wrote this)
Okay back to business, I'm thinking you can go at this aggressive and buy at the mid range but for me I will be waiting for price to get back to resistance and ride the lighting back down to middle S/R or the trend line
Okay no more Metallica references!