Looking at the daily time frame above, we can see that price has been slowly edging its way up since June of last year. This took price out of the long-term consolidation it had been in since January 2015 when the SNB removed the peg against the EUR at 1.2000 which sent the market haywire on the 14th of January.
Looking at more recent price action, I have drawn in the resistance line that price initially struggled to break through at the start of the year which pushed price back towards the 200SMA. The resistance was created by the high/close resistance cluster of 2017.
Since the end of February/beginning of March, the bulls have retaken control of the market and pushed price through the which is now acting as support.
This could have been a potential long entry into the market but we chose to apply patience given that the key round number of 1.2000 was directly above. Always think in terms of risk to reward. This is where price is currently finding comfort with 1.2000 acting as resistance.
What we now want to see is a break and close above this round number level and for it to be confirmed as support. Once this has been confirmed, we will then look to start allocating risk to long trades.
There are resistance levels ahead so we will be selective in when we enter and when we will look to compound.
This is looking strong for a trend continuation but patience needed for now.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!