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The downtrend of the last three weeks was corrected until an important resistance at 0.9933 was reached. The pair, after it stopped exactly on the mentioned resistance, started to decrease very sharply.
On Friday’s trading session, the pair reached a support at 0.9547. Due to the strength of the support, a new bullish trend is expected. In order to catch that opportunity and go “Long” with the new trend, the identification of an increasing configuration is recommended before entering any “Long” trade.
Once the resistance (One-Hour resistance) of 0.9642 will be crossed upward, the required configuration should be created. Then the transaction could be entered. Following is one of the different possibilities of market orders:
– “Limit” order on “Long” position 10 pips above the mentioned resistance, meaning: 0.9642.
– “Stop Loss” on the last low appeared: 0.9569.
– 1st Degree to “Take Profit”, on the following resistance which is: 0.9696.
There is a clear navigation between 81.78 (resistance) and 78.66 (support). Actually, the pair is currently on its way to the upper level. Its behavior when the resistance will be reached will determine the future trend as well the future potential trade:
– A vain breach of the resistance could result in a new downtrend, allowing an opportunity to go “Short.
– The resistance is crossed and broken. In such a case, an opportunity to go “Long” should be created after the occurrence of a technical correction and the identification of an increasing configuration on One-Hour graph.
Have a profitable Day!