Last week I completely looked at this wrong and said its a short without looking at the higher timeframes.. we can clearly see the support and resistance levels on the weekly chart plus a head and shoulders pattern.. this is a long until a key level is touched
I and the Alkaline team got involved in an early buy position on this pair which has been extremely rewarding. I will be looking for a second buy position into the significant structure marked if we manage to see rejections from the horizontal ray, let's see how price develops on Monday. Have a great trading week everyone!
COT Data - 50/50
I and the team have got involved in a buy from this significant order region marked, we are already seeing wick rejections and I expect continued upside if we manage to clear the box. We just need to sit tight now and wait for the market to do its thing.
COT Data - 62% Short
Price is currently testing a long term downtrend resistance. The price action brokeout below the pullback trendline support and it's currently consolidating( ranging) in a rectangular pattern. A break below the range support could lead to further dip.
I expect another bearish move to continue the trend. Once we break out of this small bearish flag formation we can expect an aggressive sell-off into the 68 region. If price wants to continue rising we will have a bias change and look for buys into the 70 region after re-testing the structure marked.
According to COT Data Source, 57% are short.