How Much More Longer BearishOn this pair, we find that on the weekly timeframe, the market is Bullish. Price even went all the way up towards our liquidity target but failed to close above it. We are currently witnessing another pullback.
On the Daily, price is bullish. We have seen prices currently retrace into the daily zone.
But there is a lot of speculation as to whether or not this our refined daily reversal zone has what it takes to invite the bulls of demand to hold prices at that level and drive it back up.
Now my Analysis:
As much as I would want the daily zone to hold, as this is the fastest way for us to find a LONG trading opportunity, jumping on the rally towards the confluence weekly/daily liquidity targets. But I have a bit of reservation on this. This is because of the force with which prices have come into the daily reversal zone. Prices have come into the zone with a strong push, and not the usual gentle slide in expected of a reversal zone. Dont get me wrong, I am not concluding that the zone will fail, but rather I am saying that instead of the initial 70% chance I had of the zone holding, I now have a 40% chance of it holding because of price action.
In the event that the zone holds, we will expect to see the rally resume with prices gravitating towards our liquidity target above; and we will excitedly pull out out panzy pips trading system and jump on the trade.
But what happens if the zone fails..?
Where this is the case, we will look to see prices deep further towards the Weekly zone below. From where we will look to see some bullish reversal and again place our trade setup right beside price and stand ready to trade.
In all of these, we do not and cannot completely rule out the possibility of catching some bearish trades where the daily zone is breached and price dips towards the Weekly zone.
Share your thoughts guys and let us see your perspective on the market
