Following the post, price action seemed to be gaining momentum in the direction of the bull trend but that was short lived. The bears took control of the market, and in the last week particularly, we have seen price break through the support that was forming the base of this current period of consolidation.
This is not what we wanted to see. As price is trading above the 200SMA, our overall bias is and so we would have liked to have seen a break and close above resistance.
All is not lost. The of September 2017 is holding strong and we saw the bulls finish last week strong with a bounce off this level. This may given the impetus back to the bulls and for them regain the ground lost.
However, if this level is broken, then we have a significant directly below in the form of the 200SMA clustered with the round number of 1.2000.
Ideally, we want to see price stay above all these levels and gather momentum to the upside. We want to see the bulls moving price through to 1.3000 in a neat linear trend structure. This has proven difficult so far for the bulls but that is not to say this can not happen. As long as price remains above the 200SMA, there is always a chance.
But if price breaks and closes below the 200SMA, then we will look to manage the long trade that is open. The trade has now moved into a small loss with the weakness in price over the last few days. Losses are part and parcel of trading but are kept small through good position sizing. This involves both a small allocated risk and a well-placed stop-loss.
Patience needed for now and we will let price dictate what course of action to take next.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!