On the Daily chart above, we still have a scenario similar to the one discussed last trading day – on Friday, last week. The steep uptrend observed is still intact as Friday’s price action showed the bulls reacted to the upper edge of the upward or bullish channel but still held on as Friday’s candle closed as quasi bullish candle. From a day trade perspective, our bias still remains bullish. However, a couple of current price actions today show the bearish retracement is still a possibility: The bulls, at the moment, seem unwilling to push further and break above the previous trading day’s high – Friday’s high @ 1.0794 (not highlighted); also, there’s a high probability that price might attempt to travel southward to close-up the “gap” formed as a result of the difference between Friday’s close @ 1.0723 and Today’s open @ 1.0758.
While our bias remains bullish, it’s very much advisable that we avoid going Long on this pair till we have a clearer coast.
On the H4 chart above, we could observe the critical position the bulls have found themselves at the start of a new week: price is yet to break above the most recent swing high @ 1.0794 (that we've highlighted using the blue broken line and the right yellow arrow), which was formed as a result of the bulls’ inability to break above a previous swing high @ 1.0793 (pointed out by the left yellow arrow). Again, our day trade bias is still “reluctantly” in favor of the bulls.
The green horizontal line @ 1.0684 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, in case of a clearer coast, 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.
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