Since 2011, however, this has been difficult to trade with short lived trends and extended periods of consolidation but this is now showing signs of resuming back to its trending ways.
At the start of 2017, price produced an candle at the 2016 high, and has established a bear trend ever since.
It was when price broke out of consolidation below the daily 200SMA earlier this year that our first short position was triggered. This swiftly moved into profit before finding support at 1.3000 which has since kept this currency in consolidation.
Price is now starting to looking interesting again with a good move to the downside which has taken price close to support and a potential breakout to the downside.
For us to consider adding compounds, we need to see a break and close below 1.3000 which is currently acting as key round number support. We would then like to see price move towards 1.4000.
There are times when patience is essential in good trading, particularly when price is in a trend and close to key support or resistance levels.
This is one of those times. Trade well and not often as the expression goes.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!