🔸We can see that this pair was in a downtrend for more than two years. At the beginning of 2020, it faced a powerful demand zone, which generated a rejection at that level. After this movement, the price made a breakout to the upside of the downtrend Channel.
🔸This was the first indication that the downtrend might be over.
🔸The first break attempt appeared to be a fakeout, but then the movement continued to confirm the behavior. We decided NOT to get involved in this pair at that time, as we expected a more precise and more confirmed correction.
🔸Now we can see that during the last three months, the price was in a consolidation / corrective phase. Furthermore, the corrective move is making a throwback to the support zone (previous resistance zone).
🔸In a lower timeframe (Daily Chart), the corrective pattern can be seen more clearly; we know that it is a correction of three waves of type A B C.
🔸The price is breaking the trend line of the movement, but we expect a break of the 125,000 - 125,500 zone before considering a bullish position since it is the local resistance zone.
🔸The stop loss of the position should be positioned below the last swing (wave C).
🔸The take profit is the next Resistance zone at 133,000.
🔸This was the first indication that the downtrend might be over.
🔸The first break attempt appeared to be a fakeout, but then the movement continued to confirm the behavior. We decided NOT to get involved in this pair at that time, as we expected a more precise and more confirmed correction.
🔸Now we can see that during the last three months, the price was in a consolidation / corrective phase. Furthermore, the corrective move is making a throwback to the support zone (previous resistance zone).
🔸In a lower timeframe (Daily Chart), the corrective pattern can be seen more clearly; we know that it is a correction of three waves of type A B C.
🔸The price is breaking the trend line of the movement, but we expect a break of the 125,000 - 125,500 zone before considering a bullish position since it is the local resistance zone.
🔸The stop loss of the position should be positioned below the last swing (wave C).
🔸The take profit is the next Resistance zone at 133,000.