This pairing is in an interesting place at the moment because it is reaching weekly highs it hasn't seen since August 2010... 9 years, price is currently 100 pips away from this level so we could see a bullish run up to it.
Another possible outcome is the 1 we have drawn on the chart, price could come back down to retest this trend line that has formed and make a new HL ( higher low ) before going up hitting this massively strong resistance before coming down and breaking through our TL, if this is the case and our TL is broken this pair could sink quicker than the Titanic.
We can only see bearish movement once price does hit this level as we can see USD weakness coming very soon and a possible recession.
This is a swing trade so expect this to develop over a few weeks or months so if this is not your style then don't enter, this trade works well for us as we don't have to keep checking the charts so we can just sail off into the sunset on our Yacht and not worry about a thing ( I'm joking about the yacht ;p but I do have a dinghy if that counts )
If this trade plays out by the rules you will be able to pay your mortgage off ;p
Another possible outcome is the 1 we have drawn on the chart, price could come back down to retest this trend line that has formed and make a new HL ( higher low ) before going up hitting this massively strong resistance before coming down and breaking through our TL, if this is the case and our TL is broken this pair could sink quicker than the Titanic.
We can only see bearish movement once price does hit this level as we can see USD weakness coming very soon and a possible recession.
This is a swing trade so expect this to develop over a few weeks or months so if this is not your style then don't enter, this trade works well for us as we don't have to keep checking the charts so we can just sail off into the sunset on our Yacht and not worry about a thing ( I'm joking about the yacht ;p but I do have a dinghy if that counts )
If this trade plays out by the rules you will be able to pay your mortgage off ;p