We can see the key areas of support and resistance marked with the green lines, and the places price has touched these key areas marked with purple arrows.
We can see that a massive candlestick shadow broke out our 80.469 support but came back up and closed the correct side of it, this is a good sign the sellers are exhausted and the buyer have taken over especially on a higher timeframe like this, the candle after this long shadow was a lovely bullish candle confirming that buyers have taken control.
Price might come back to test 80.469 support so instead of entering the trade now we will set a couple of orders, 1 just above support and 1 just above current price, the enables us to let price sort itself out without us missing out on the trade and without risking our money.
We think price can test and use 85.449 as resistance, but if this price is broken price is likely to rally to 88.995 which is also a really strong key resistance.
Always remember to use correct risk management when trading.
We can see that a massive candlestick shadow broke out our 80.469 support but came back up and closed the correct side of it, this is a good sign the sellers are exhausted and the buyer have taken over especially on a higher timeframe like this, the candle after this long shadow was a lovely bullish candle confirming that buyers have taken control.
Price might come back to test 80.469 support so instead of entering the trade now we will set a couple of orders, 1 just above support and 1 just above current price, the enables us to let price sort itself out without us missing out on the trade and without risking our money.
We think price can test and use 85.449 as resistance, but if this price is broken price is likely to rally to 88.995 which is also a really strong key resistance.
Always remember to use correct risk management when trading.