Price has broken through these levels and is now also trading below the round number 1.8000 and the weekly 200SMA which we would have liked to have seen hold strong as support. Price is now back at our entry from initial break an close above 1.8000 last month.
All is not lost. levels are not hard levels. They are zonal areas. Price moves to around these areas and can often dip below in a pullback in a bull trend before finding support and resuming the move back up.
In terms of support, the daily 50SMA is not too far below which is clustered with the high of 2017.
In addition, if we look at the monthly time frame when the bull trend started at 1.6000 support, September, October and November 2017 were all followed by December being . We then saw January, February and March of this year all being with April so far being .
We can not expect price to move in a straight line. There will always be pullbacks and periods of profit taking.
If this pullback turns into a full on trend reversal, then we have a stop-loss in place with a small risk attached.
Patience needed for now.
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