This pair is getting really close to its lowest point from last year at 0.94, and I'm beginning to lean towards buying. Here's my thinking.
I believe we might see it drop below 0.94, but that could just be a quick move to trigger stop-loss orders, with lots of them set just below that point.
If it does drop below 0.94, it might happen quickly, with a sharp fall and then a fast bounce back above 0.94.
Looking at the 4-hour chart (see the link below), it paints a clear picture: we're gradually heading down to 0.94, the market looks really oversold, and the MACD divergence is hinting that the downward trend is losing steam and buyers might start stepping in.
When you look at the weekly charts, you'll see similar signs of divergence at a crucial support level. This pretty much tells me that the next big move is likely upwards.
I'm starting to buy now and will keep adding gradually. If we do break below 0.94, I'll wait for that sharp drop, then quickly check the shorter-term charts for signs to buy using my TRFX indicator.
My first goal for this trade is the weekly resistance level at 0.968. I expect a bit of a pause there, then a strong move towards or even past 1.00 in the months ahead.
Hope you found this interesting! If so, please give it a boost to show your support :)
I believe we might see it drop below 0.94, but that could just be a quick move to trigger stop-loss orders, with lots of them set just below that point.
If it does drop below 0.94, it might happen quickly, with a sharp fall and then a fast bounce back above 0.94.
Looking at the 4-hour chart (see the link below), it paints a clear picture: we're gradually heading down to 0.94, the market looks really oversold, and the MACD divergence is hinting that the downward trend is losing steam and buyers might start stepping in.
When you look at the weekly charts, you'll see similar signs of divergence at a crucial support level. This pretty much tells me that the next big move is likely upwards.
I'm starting to buy now and will keep adding gradually. If we do break below 0.94, I'll wait for that sharp drop, then quickly check the shorter-term charts for signs to buy using my TRFX indicator.
My first goal for this trade is the weekly resistance level at 0.968. I expect a bit of a pause there, then a strong move towards or even past 1.00 in the months ahead.
Hope you found this interesting! If so, please give it a boost to show your support :)
Note
As mentioned we got the move down to 0.94 but did not break it, there was a strong reaction at 0.94 with the TRFX indicator giving great entry signals on the 4hr and 12 hr charts see below.
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Join Telegram group -t.me/+T7V_JSiKKsliMTJl
30 Days, 30 Ways to 10X Your Trading Results Get free daily tips to transform your mindset, strategy, and consistency.
Sign up here → thetradingedge.net/30days
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.