On the Daily chart above, we keep experiencing an unrelenting bulls’ rush. Last week, we observed a critical resistance area: a confluence of Weekly fib. 61.8% retracement, and the most recent Monthly chart swing high @ 1.4719 (which we've highlighted using the blue broken line on the Daily chart). As anticipated, the 1.4719 resistance-confluence made its impact felt as it halted the bulls’ move for two trading days. However, at the beginning of today, the bulls gave an indication that they were determined to continue their dominance as price broke above the most recent Daily swing high @ 1.4766 (not highlighted to avoid cluttered chart). Personally, the current rally has been a steep one, and, consequently, a major retracement – as we’ve been discussing since last week – might be imminent. However, what we currently know is that the bulls aren’t showing signs of weakness. From a day-trade perspective, let’s keep seeking Long trade setups until the bears give us signs that they are ready to challenge the bulls.
On the H4 chart above, price has broken the most recent swing high @ 1.4735 (that we've highlighted using the lower blue broken line) upward. That shifts our bias in favor of an upward price move. The green horizontal line @ 1.4610 highlights the most recent swing low, and as long as price stays above it - in the absence of any new and higher swing low - our bullish or upward bias remains intact. Pls NOTE: The most recent Daily swing high @ 1.4766, which we discussed on the Daily chart, is highlighted on the H4 chart with the upper blue broken line.
However, we still need our Hourly charts - using Fibonacci retracement levels and important support levels - to seek promising areas to take our Long positions. Price pattern on the Hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today's up-trend.
Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.
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