On the Daily chart above, yesterday, the lower edge of the upward or bullish channel eventually proved an insurmountable hurdle for the bears as the initial price-rally was sustained. Consequently, our trading bias, from a day-trade perspective, has again shifted to favor the bulls. However, for us to be convinced of the bulls’ readiness to push price further today, we would like to see the break above the previous day’s high @ 1.0847 (not highlighted). In case price breaks above the 1.0847 level, we should expect further unhindered bullish action toward the most recent Daily swing high @ 1.0897 (which we've highlighted using the upper blue broken line).
On the H4 chart above, price broke, at that time, the most recent swing high @ 1.0787 (which we've highlighted using the lower blue broken line) upward. That shifted our bias in favor of an upward price move. However, in line with what was discussed on the Daily chart, the most recent swing high – also the previous day’s high @ 1.0847 (which we've highlighted using the upper blue broken line) is a crucial resistance level we would like to see broken for us to be more confident of the bulls’ resolve to sustain their activity.The green horizontal line @ 1.0713 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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