Continuing from my previous idea shared last month (refer to the related post below), the market has played out exactly as anticipated.
The sell-off occurred as expected, taking place at the Monthly 0.618% Fibonacci level. The Monthly candle closed back below the crucial 1.10 resistance level, ultimately confirming that the breakout was indeed a fake one on the Monthly charts.
So, what's the next step ?
At present, the market is on a gradual descent towards the 1.07 level. This trend becomes evident when you observe the momentum of price action, gauged by the size of the candles, on the lower timeframes. For a visual representation, you can check out the daily chart image below
Anticipating the movement around the 1.07 mark, it's reasonable to expect a buying response due to a convergence of factors in this area.
First the newly established weekly BUY/DEMAND level holds substantial weight. This very level kickstarted the upward move that led to the 0.618% Monthly Fibonacci level. The speed at which price is retracing back to this levels signifies a notable zone of interest for potential buyers.
The next factor is the weekly trend line located around 1.072 marked on the chart, you will also notice price has been moving up in a ascending channel hitting the trendline then popping a new high could this happen again??
A third influential factor around this area is the Monthly support level, situated around 1.064. This level had held its ground as a pivotal support for several years, only succumbing to a breach in the past year.
Considering these converging factors, my attention will be directed towards identifying buy signals on my TRFX indicator across the 4-hour to daily charts. I intend to initiate a position as price dips below 1.075, anticipating the likelihood of a more pronounced descent towards 1.06 before eliciting a response.
Initially, the target for this strategy is set at the 1.10 resistance level. Subsequently, the course of action will be determined by the prevailing price movement at this juncture. A decisive breach and a MONTHLY CLOSE above 1.10 would suggest an upward trajectory towards 1.15.
However, if 1.10 proves to be a resilient barrier once again, the possibility of a downward move towards parity cannot be dismissed.
To grasp the background of the sell concept from the prior month, I encourage you to refer to my linked post.
The sell-off occurred as expected, taking place at the Monthly 0.618% Fibonacci level. The Monthly candle closed back below the crucial 1.10 resistance level, ultimately confirming that the breakout was indeed a fake one on the Monthly charts.
So, what's the next step ?
At present, the market is on a gradual descent towards the 1.07 level. This trend becomes evident when you observe the momentum of price action, gauged by the size of the candles, on the lower timeframes. For a visual representation, you can check out the daily chart image below
Anticipating the movement around the 1.07 mark, it's reasonable to expect a buying response due to a convergence of factors in this area.
First the newly established weekly BUY/DEMAND level holds substantial weight. This very level kickstarted the upward move that led to the 0.618% Monthly Fibonacci level. The speed at which price is retracing back to this levels signifies a notable zone of interest for potential buyers.
The next factor is the weekly trend line located around 1.072 marked on the chart, you will also notice price has been moving up in a ascending channel hitting the trendline then popping a new high could this happen again??
A third influential factor around this area is the Monthly support level, situated around 1.064. This level had held its ground as a pivotal support for several years, only succumbing to a breach in the past year.
Considering these converging factors, my attention will be directed towards identifying buy signals on my TRFX indicator across the 4-hour to daily charts. I intend to initiate a position as price dips below 1.075, anticipating the likelihood of a more pronounced descent towards 1.06 before eliciting a response.
Initially, the target for this strategy is set at the 1.10 resistance level. Subsequently, the course of action will be determined by the prevailing price movement at this juncture. A decisive breach and a MONTHLY CLOSE above 1.10 would suggest an upward trajectory towards 1.15.
However, if 1.10 proves to be a resilient barrier once again, the possibility of a downward move towards parity cannot be dismissed.
To grasp the background of the sell concept from the prior month, I encourage you to refer to my linked post.
Note
Market reacted at the weekly trend line see image below with a 4 hr signal I have not entered yet will wait for a pullback towards 1.082 and enter on the next signal.
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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
Related publications
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.