Here we have a very interesting chart. This chart appears to repeat itself. If you look at the first touch of the red resistance line, you could possibly call it a head and shoulders before a drop also. It depends on how picky you are, I did not label it as such. The currency pair appears to be happy with this bottom as strong long term support. As you notice when looking at the white lines, the bottoms have turned from lower lows to possibly higher lows. Only time will tell this. We are still in a series of lower highs though. If this play does play out I would expect the next low to be higher than the last one. That is why I have tp placed around the 151 area. I see some more interesting points in this chart though further analysis will have to wait until we see what happens in the next couple of weeks. Good luck Traders!!!
Trade active:
I picked up a small short position today when price failed to hold above a trend line I drew on the faster time frames connecting the bottom of the bodies of the weekly candles in the pattern that is forming. It is still not a confirmed position so I will be adding more if the weekly chart confirms the trade. Since I have picked up a small position a little early I have placed my stop loss at the breakeven point since the trade is already 40 pips into profit, costing me nothing if the trade fails. The price of the early short is at 182.021
Trade active:
I got stopped out of my short last night at my breakeven point, and got back in today at 182.307. I will have a 10 pip stop loss until I can hopefully get it back to breakeven.
Comment:
The head and shoulders did not play out. It tried to at first, so it still was not a bad trade. Patience.