Flowing the trend but only looking to buy at a pullback to structure which lines up with a 61.8 retracment
We can take this trade 3 ways :
1- Aim for the longer targets
2- Aim for the 1.27 ext
3- Aim for a retest of previous highs.
The logic is quite easy to grasp. Price is clearly in an uptrend following a trend line. We are now on that trend line which coincides previous structure and a 0.38 fib level which seems to have some significance.
We should be aware of long opportunities
I couldent take this trade as i am already exposed in the markets.
Just wanted to show how a kill zone gives you added confidence.
We might get a retracment off the 50% fib level as it coincides with the 200ema
As we can see this pair has been in a range since 2013 (green lines limits of monthly),
On the dailly we see more range movement (red borders).
As price is now at a point historically considered low we expect market to go up.
Price is at a place where historically is considered a turning point. added to that we get confluence with the 76.8% Fib level and the 200 EMA that has acted as a major level for this pair in the past.
I see two possible ways this pair could move in this week.
1st - Long if the double bottom holds and we get a trend continuation to the upside. which i belive is the most probable.
2nd - Short if we get a touch of the base of the trend line and fail to break through.
Any comments ?