downside momentum hasn't finished yet. We could have seen more downside today but that was curtailed due to DXY
weakness hence we should see some more downside movement begining of the next week. The level I'm looking at is 1.2107, from where I will be looking for entry reasons to go long (short term long). Price action is trading within the channel for some time now and respecting the trendline and making lower lows and lower highs which suggest this pair could continue to drag down unless the trendline is broken. I will be looking to go long once the price action reach to the level mentioned above. Of course I would need to see a bullish engulfing
candle from that level that touches the trend line
as well. Ideal scenario a double bottom
at or around 1.2107/1.2120 level so that we can go long and target the upper band of the trendline before resuming the downtrend one more time.
I have marked the tp and sl for you as well.
Let me know your thoughts.
Trade safe and good luck.