“It is easier to swim with the tide than against it.”
It’s so cliché but you really can’t argue with that chart.
Now looking forward, the hourly channel isn’t so important itself because firstly, it’s a subjective type setup and second, it’s almost vertical (on the more important higher time frame charts) which always makes any pure breakouts impossible to trade. What does make the level important however, is the fact that price is also pushing down toward swing lows, which also coincide with an important zone from back in 2001 and beyond.
The bulls defending parity will be using this as the last major level of support before it opens up a serious test of the psychological, parity level. But as discussed above, the holiday week trading and overly long USD market also sees a huge risk of a short squeeze and the level looks as good as any to see the bounce come out of.
Which way are you looking to use this zone in your trading?