Buy above 0.7256. Stop loss at 0.72299. Take profit at 0.7326.
Reason for the trading strategy (technically):
Price has dropped perfectly from our selling area yesterday and is fast approaching our profit target. We prepare to buy above major support at 0.7256 (Fibonacci extension, horizontal swing low support) for a push up to at least 0.7326 resistance (Fibonacci retracement, horizontal swing high resistance). However, we have to be cautious about the descending channel resistance too.
Stochastic (34,5,3) is seeing support above 4.9% where we expect to see a corresponding bounce off.
Correlation analysis: We’re seeing commodity strength vs USD today with bounces expected on AUDUSD and NZDUSD.
Reason for the trading strategy (technically):
Price has dropped perfectly from our selling area yesterday and is fast approaching our profit target. We prepare to buy above major support at 0.7256 (Fibonacci extension, horizontal swing low support) for a push up to at least 0.7326 resistance (Fibonacci retracement, horizontal swing high resistance). However, we have to be cautious about the descending channel resistance too.
Stochastic (34,5,3) is seeing support above 4.9% where we expect to see a corresponding bounce off.
Correlation analysis: We’re seeing commodity strength vs USD today with bounces expected on AUDUSD and NZDUSD.