We can see lots of confluence for a rebound on this pair :
1) Price rejected a strong horizontal support 4 times
2) Last trading day the pair printed a Doji (reversal pattern)
3) Huge RSI divergence
But we can also see that the price might be capped a bit by a couple factors :
1) Descending trendline
2) MA50
If the descending trendline is broken we can see a jump at least until the MA50 which is still far from our price so that gives us a lot of room to trade. The next horizontal resistance is not to be found until the 1.266 area.
Lets look at the 4H chart:
First thing: We see how the price found support and it is now consolidating. Also we see the RSI divergence (price falling, RSI gaining strength)
Once the price breaks out of this area it will face resistance by MA50 and descending trendline. It might directly break it as it was already tested on the 19th of July or it might do a bit what the red arrows represent.
I think it is a bit early to go long in this pair but I will be monitoring it closely.
Trade safe!
1) Price rejected a strong horizontal support 4 times
2) Last trading day the pair printed a Doji (reversal pattern)
3) Huge RSI divergence
But we can also see that the price might be capped a bit by a couple factors :
1) Descending trendline
2) MA50
If the descending trendline is broken we can see a jump at least until the MA50 which is still far from our price so that gives us a lot of room to trade. The next horizontal resistance is not to be found until the 1.266 area.
Lets look at the 4H chart:
First thing: We see how the price found support and it is now consolidating. Also we see the RSI divergence (price falling, RSI gaining strength)
Once the price breaks out of this area it will face resistance by MA50 and descending trendline. It might directly break it as it was already tested on the 19th of July or it might do a bit what the red arrows represent.
I think it is a bit early to go long in this pair but I will be monitoring it closely.
Trade safe!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.