On the monthly chart the pair has been ranging between 1.2 and 1.43 since 2016 with resistance established 2018. Currently on up leg of third cycle. Ignoring the Liz Truss blip.
Daily chart uptrend established Jan 25 and should continue up to resistance. However possible head & shoulders forming, which would indicate change of character, at most recent cycle but a good trade up to right shoulder still possible and then it will change to down trend to trend line
4H - Price at good quality demand with 4 basing candles. Ready for reversal and long to potential right shoulder at 1.355 or higher all the way to multiyear resistance.
COT Non-com and retail are increasing positions and commercials are reducing. Valuation is cheap.
Plan: waiting for US CPI data and confirmation of direction change and then long with stop at 1.33570 and TP at 1.355 to right shoulder. (I like these as worst that can happen, after up move is confirmed, is H&S doesnt form and it continues to upside increasing R:R). Followed by good short.
Let me know what you think
Daily chart uptrend established Jan 25 and should continue up to resistance. However possible head & shoulders forming, which would indicate change of character, at most recent cycle but a good trade up to right shoulder still possible and then it will change to down trend to trend line
4H - Price at good quality demand with 4 basing candles. Ready for reversal and long to potential right shoulder at 1.355 or higher all the way to multiyear resistance.
COT Non-com and retail are increasing positions and commercials are reducing. Valuation is cheap.
Plan: waiting for US CPI data and confirmation of direction change and then long with stop at 1.33570 and TP at 1.355 to right shoulder. (I like these as worst that can happen, after up move is confirmed, is H&S doesnt form and it continues to upside increasing R:R). Followed by good short.
Let me know what you think
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.