As seen from the H4 chart, this pair have been on the rise over the last three weeks. We look to take a long position at a good support. Notice that the US stock market has been on the decline. Since currency and the stock market moves inversely to each other, we are definitely bullish on the dollar.
Price has retrace to 31.8% of the uptrend which is a common level for price to retrace to.
The price level of 1.26492 appears to be a good support as seen in D1
We look to enter this part when price closes above 1.2693 with a SL at 1.2636.
How you could use this analysis?
- Check if you are right about the market direction - always trade with the flow
- Use this together with your trading strategy and look for a valid setup before entering
- Use this analysis as potential turning points where the pair may reverse and change direction
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