THIS PAIR SHOULD MAKE FOR AN INTERESTING STUDY:
The monthly baseline is bearish, but this pair has turned radically bullish over the last 20 or so days. At 0.9273, it's into the upper resistance zone of the 36-day price range. (If its 36 days, I can probably refer to this as the monthly price range, don't ya think?)
So, will the rate come down from here, in spite of the more immediate bullish sentiment? (USDJPY is in a similar situation, but does not yet betray any inclination whatsoever to fall.) It's already been dropping for about a week, so will it continue to do so? Not only is the daily trend bearish now, but price has fallen below the two-day baseline as well, which suggests that this pattern will indeed continue—plus, the eight-hour baseline turned south too, about ten to twelve hours ago.
However, there is strong temporal support (as viewed on a one-hour chart) at 0.9266, and statistical support in the form of the 90-minute price range beginning at 0.9259. Statistical support from the four-hour price range begins at 0.9253, and at 0.9239 from the five-hour price range.
Since no pair should be deemed overall bearish from an actionable/practical perspective until the six-day trend line is sloping downward, I'm going to have to conclude that the right move to make would be to buy this pair if and when the eight-hour baseline turns north following price's entrance into the above defined region of support (as illustrated below).
The monthly baseline is bearish, but this pair has turned radically bullish over the last 20 or so days. At 0.9273, it's into the upper resistance zone of the 36-day price range. (If its 36 days, I can probably refer to this as the monthly price range, don't ya think?)
So, will the rate come down from here, in spite of the more immediate bullish sentiment? (USDJPY is in a similar situation, but does not yet betray any inclination whatsoever to fall.) It's already been dropping for about a week, so will it continue to do so? Not only is the daily trend bearish now, but price has fallen below the two-day baseline as well, which suggests that this pattern will indeed continue—plus, the eight-hour baseline turned south too, about ten to twelve hours ago.
However, there is strong temporal support (as viewed on a one-hour chart) at 0.9266, and statistical support in the form of the 90-minute price range beginning at 0.9259. Statistical support from the four-hour price range begins at 0.9253, and at 0.9239 from the five-hour price range.
Since no pair should be deemed overall bearish from an actionable/practical perspective until the six-day trend line is sloping downward, I'm going to have to conclude that the right move to make would be to buy this pair if and when the eight-hour baseline turns north following price's entrance into the above defined region of support (as illustrated below).
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