On the Daily chart above, price is currently having a bullish retracement in a downtrend. We anticipate that price would travel upward toward the upper edge of the downward or bearish channel before any major resistance. The strength of the channel’s upper edge is buttressed by a cluster of old support levels (around 1.0550) – that we expect to now act as a critical resistance area – which might be forming a resistance-confluence with the upper edge. However, from a day-trade perspective, the previous day’s high @ 1.0449 (which we've highlighted using the blue broken line) might pose a threat to further upward price move, hence, it would be safer for us to see price break above the 1.0449 level before seeking Long trade setups on the Hourly chart – supported by the H4 chart.
On the H4 chart above, we would observe that price is in a bullish channel formation. There are a couple of previous swing highs that are acting as resistance levels within the channel; hence, to have a clearer coast for our Long trades, we would prefer to see price break above the upper edge of the upward or bullish channel, which would be confirmed by price break above the most recent swing high – also the previous day’s high – @ 1.0449 (which we've highlighted using the blue broken line).The green horizontal line @ 1.0336 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.
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.
No comments:
Post a Comment