This is one of the pairs I will be following this week and probably the next few weeks. I am presenting you with my plan on the H4 time frame, which can be followed and traded directly on the H4 or on lower time frames – M30 would be great. I will post Live Signals on our Twitter page based on that plan.
Few words for the currency pair:
So far the pair made a nice uptrend after bouncing on a at the end of February. After the first wave was finished a correction occurred and the next wave sent the pair all the way up to the at a price of around 1.5150. From there the pair moved down in the past month and a half and currently reached the previous top that was made by the first wave of the uptrend. This is happening in the area between 1.4500 and 1.4550. From that point we have two possible scenarios. Either this downtrend is a correction to the third wave and will stop here, from where a new uptrend wave will follow, or if a break of this area occurs we can consider that the pair is in a strong downtrend which might lead it all the way back to the from where the uptrend started in February around 1.3800. On the H4 time frame I have placed my Buy Areas and Sell Areas , thus preparing myself for both scenarios. I have divided the Buy and Sell areas with lines, where the price might consolidate or bounce back a little bit, before continuing. Below you can find the Areas with price information for them.
Currently the pair is still standing above the Middle Area, which is a previous top of the uptrend on Daily and is also bouncing from a small at around 1.4655. Our best case scenario here is for the pair to make a square formation between the two areas and a break to occur both of the square and the areas. This will give us a huge signal of where the price might be headed in the next few weeks, even months. Wait patiently for the development and after that get what the market gives you.
Sell Area 1: 1.4490 – 1.4375
Sell Area 2: 1.4360 – 1.4110
Sell Area 3: 1.4080 – 1.3830
Buy Area 1: 1.4675 – 1.4900
Buy Area 2: 1.4925 – 1.5100
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I will also update the idea here and post the signals.
I wish everyone a profitable week! :)