Long term trade.
Following a rally of the pair up until the 15th of February '18, peaking at around 1.256, the overall sentiment has been fairly bearish whilst dropping all the way down to about 1.12, forming a potential head and shoulders pattern as seen in the chart. A bear trap can also be spotted falling outside both the head and the shoulders placement further backing our claim, eventually testing our trendline twice while showing lower highs , demonstrating a downwards trend for the pair. We believe that we will experience lows similar to those of May '17 (1.09) at some time around June of this year for this reason we entered the trade on the second retest of the trendline at 1.149 on the 31st of Jan '19 while maintaining a Risk/Reward Ratio of 2.61.
Given the interbank rate of 1.133, the trade is currently resting on a mild profit of approximately 100 pips.
As Always we will continue to monitor this trade and post updates when deemed necessary.
Adár Capital.
Following a rally of the pair up until the 15th of February '18, peaking at around 1.256, the overall sentiment has been fairly bearish whilst dropping all the way down to about 1.12, forming a potential head and shoulders pattern as seen in the chart. A bear trap can also be spotted falling outside both the head and the shoulders placement further backing our claim, eventually testing our trendline twice while showing lower highs , demonstrating a downwards trend for the pair. We believe that we will experience lows similar to those of May '17 (1.09) at some time around June of this year for this reason we entered the trade on the second retest of the trendline at 1.149 on the 31st of Jan '19 while maintaining a Risk/Reward Ratio of 2.61.
Given the interbank rate of 1.133, the trade is currently resting on a mild profit of approximately 100 pips.
As Always we will continue to monitor this trade and post updates when deemed necessary.
Adár Capital.