It is Friday the last day of the trading week. It would be advisable to pull of of the trade at this point. The week comes to and end we are most likely to experience a drop in price.
The Limit line had been shifted to 0.90779. Between 0.90680 and 0.90779 there is a brief channel point. These points can be taken into consideration when entering a new week, month, year trade period.
We can call it a day at this point as a precautionary decision. It is a new week and the bull trend has been fulfilled since last week. A new week means a possible change in decisions which can change the trend direction.
The trend lines assist to give a more clear picture of price direction and price action strength. The AUD loses strength but then the CAD starts to show signs of strength development resulting in a bullish upward trend.
This concludes the observation criteria where the trend line tools are utilized as a guiding aide to identify market activity, by making clear the story of what lies ahead.
I utilized the trend line tools to best understand the current USDJPY market condition. USD starts week strong, but gradually begins to lose value against the Yen.
