Last week analysis showed correctly where the price would move, but it did not reach the target ultimately. The price stopped 100 pips from the entry-level and then reversed below the 1.35815 resistance level.
We can see is a lot of candles with wicks on the upper side forming different shapes of Pin bars. In the last five days of trading sessions , the price did not close above the bears strength line.
The price is currently at a strong supply zone where lots of sellers are pushing the price down, but what is visible on the chart is that the bulls are not allowing the price to close below previous candles close.
This creates a range where the price of the bears and bulls are strong enough to break in any direction.
If we draw trendlines and connect highs and lows at the current market status, we have a triangle that could break soon. This is visible on the chart drawn with green lines.
We need to wait until the price breaks out the range to define future price direction. Because of the tight price for several days we can expect breakout and strong move in any direction.
The price is below the resistance level which strongly holds the price below. Large wicks are showing that, but it is also a sign that there is pressure from below on the upper line of the downtrend channel.
Until the price breaks above 1.35815 I would wait for bullish opportunities. That is the resistance level that the price needs to break above in order to continue to the next level and that is 1.37076.
The triangle setup on the chart could be traded with these entry and exit levels. The entry would be above the triangle line around 1.36300. After the breakout, the price will return back down to verify the breakout. On the retrace would be the best entry point.
The Stop-loss level would be 1.34860 which is below the triangle line.
The profit target is at 1.37500 which is high of the previous candles and it is slightly above the resistance level at 1.37076.
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