Bulls have been relentlessly pushing price up marking daily higher highs and higher lows. We may soon see a break of 166.40.
With a massive movement like this, most would think that we should buy into the trend. However, I still think otherwise as markets tend to be mostly ranging than trending. Another reason is that this move hasn't corrected yet and it is prudent to wait for a correction before going long.
My approach would be to trade against the prevailing trend and the key setup I would be looking for is a compression of price action. Monday was a huge 1% move. Yesterday, the volatility dropped by more than half. If market continues to compress throughout the Asian session to London Session, then we might see a signal forming soon.
We have a series of events tonight at 830pm (GMT+8) from US and Canada. Could these events cause price to respect the resistance at 166.40?
With a massive movement like this, most would think that we should buy into the trend. However, I still think otherwise as markets tend to be mostly ranging than trending. Another reason is that this move hasn't corrected yet and it is prudent to wait for a correction before going long.
My approach would be to trade against the prevailing trend and the key setup I would be looking for is a compression of price action. Monday was a huge 1% move. Yesterday, the volatility dropped by more than half. If market continues to compress throughout the Asian session to London Session, then we might see a signal forming soon.
We have a series of events tonight at 830pm (GMT+8) from US and Canada. Could these events cause price to respect the resistance at 166.40?
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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.