continued its growth and is now testing the resistance/local high of 1.1106. The movement, though on a small volume, but confident and rapid. Moreover, the pair completely absorbed the previous sharp price correction. This means that bulls still dominate the market. Given all these factors, we should give preference to long positions.
Purchases can be opened after a sharp and confident breakdown of this mark, which will be an excellent bullish signal. The breakout movement should be supported by a large volume, which will be a more reliable signal for entry into the market. Stop-loss should be put just below the breakout volume bar. The potential of the transaction is more than 100 points.
The sentiment, or market mood, fully confirms our trading scenario of opening long positions on this currency pair, as the majority (83%) of the market retail traders are in short positions (trading against the “crowd”).
especially for ICMarkets
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.