EURCHF | Perspective for the new week | Follow-UpMy last publication on this pair (see link below for reference purposes) witnessed price moving over 70pips in our direction (see link below for reference purposes) and we presently have another trading opportunity building up as price springs out of Demand zone which also coincides with the Bullish Trendline (Pivot III) with high expectations of a trend continuation.
After finding a bottom in mid-January 2021 the second time, price continued with a Bullish character despite the political turmoil in Italy.
Tendency: Uptrend ( Bullish )
Structure: Trendline | Breakout | Supply & Demand
Observation: i. Weekly perspective: Reversal pattern evolving as the price continues to struggle out of a two-year Bearish run since mid last year (2020), I keep finding reasons on the lower timeframe to go LONG in the coming week(s).
ii. A visual representation of my bias can be seen represented by the line drawn under pivot lows (Pivot I, II & III) which also details the prevailing direction of price.
iii. It is worthy to note that price action has respected the Bullish trendline since the 18th of January 2021 and hitting this line the third time with sharp rejections last week.
iv. My Key level @ Fr1.07900 appears to have a say on the momentum of both the Buyers and Sellers as either a Breakdown/Breakout of this level has determined the direction of the majority in the recent past.
v. A successful Breakout of Key Level (29th Jan 2021) followed by rejection of this level during last week trading session signals an uptrend continuation.
vi. It is, however, important to note here that a significant Breakdown of Trendline/Demand zone might disregard this setup as it is advisable to look for upthrust movement from Demand level should this happen... Best of luck!
Trading plan: BUY confirmation with a minimum potential profit of 150 pips.
Risk/Reward : 1:5
Potential Duration: 10 to 20days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
