Price, since that last post, continued to gain momentum but that has been halted by key resistance in the form of the weekly 200SMA. It is now a waiting game to see if this halt is temporary before the bulls regain control of the market or are we likely to see a reversal of trend back into consolidation.
When price is in a trend, levels are likely to get broken but this often involves an element of patience is we wait for price to dictate that. We also wait for, as a the minimum, the daily close above resistance to be confirmed as support. The more conservative will wait for a weekly close.
We do not trade on intraday closes as these carry a much higher chance of being a fake breakout.
We can see that price tried to push through the weekly 200SMA last week but the bears came in strong and took price back below.
We currently do not have any trades on this currency pair but if we get a break and close above the weekly 200SMA as well as trend prove itself but clearing further resistance levels, then we will look to place long trades.
This is on the watchlist but patience needed until we get the required high-probability setup that defines our edge.
Remember, if you can not define your edge then you do not have one. And if you do not have one, you will get eaten by someone who does.
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