On the Daily chart above, recent price actions have reversed the bearish trend that we’ve been familiar with for the past two months: yesterday, price broke above an important resistance level – the most recent Daily swing high @ 1.6240 (which we’ve highlighted using the blue broken line), and, as a result, we are beginning to see price pattern having a higher-high, higher-low formation, which is a very strong sign of a bullish scenario. At least for the time being, we expect price to continue moving northward, hence, our bias from a day-trade perspective has further strengthened in favor of the bulls. Furthermore, price has broken above yesterday’s high @ 1.6306 (not highlighted): a further confirmation of the bulls’ resolve. Based on the overall scenario, the coast seems clear enough for us to seek Long trade setups on our Hourly charts – supported by the H4 chart.
On the H4 chart above, price has broken the most recent swing high @ 1.6193 (which we've highlighted using the blue broken line) upward. That sustains our bias in favor of an upward price move. The green horizontal line @ 1.6135 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.
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