Price has been ranging between support and resistance levels since the end of July.
Recently, price broke through resistance on the 22nd of September. As price has now reverted back down to a level of previous resistance, we could see price reject at this level and at the 200 day EMA to create bullish momentum and move upwards. If there is confirmation of bullish rejection at this level (closed 4H bullish candle), I will take a long position.
However, before price entered this consolidation zone between support and resistance, the USD was significantly weak. Therefore, we could also see price break the resistance level and the 200 day EMA to create a bearish momentum which will likely continue down to support and possibly breaking the support level too. In this scenario, I will look for a break of the resistance and 200 day EMA before placing my short order.
Recently, price broke through resistance on the 22nd of September. As price has now reverted back down to a level of previous resistance, we could see price reject at this level and at the 200 day EMA to create bullish momentum and move upwards. If there is confirmation of bullish rejection at this level (closed 4H bullish candle), I will take a long position.
However, before price entered this consolidation zone between support and resistance, the USD was significantly weak. Therefore, we could also see price break the resistance level and the 200 day EMA to create a bearish momentum which will likely continue down to support and possibly breaking the support level too. In this scenario, I will look for a break of the resistance and 200 day EMA before placing my short order.