As you could see on the monthly chart we have two key scenarios. It would become more clear once we drop down to the weekly time frame.
However, as you could see price has breached above the downward channel demonstrating bullish momentum. This strength of the bullish momentum can be argued through the Divergence seen on the RSI and the chart. This therefore, provides us the extra confluence of a potential mini corrective downward structure to retest the upper trend line of the channel before a possible continuation to the upside.
The “Management Level” can be a key indication if the short trade to the trend line is valid. This would be analyzed further on the weekly time frame. A break and close below this level would increase the probability of a retest of the trend line. Furthermore, the extra confluence adding to our decisions is the 200 EMA acting as magnetic support around the target area and the upper trend line.
On the other hand, if price breaks above its 8 year high 125.920 then we can see further bullish momentum to the upside of 133.500 then up to the Red Box. As of now price is hovering around the neutral zone, as we are not trading directly off the Monthly chart we are looking for the short setups in regards to the potential downside movement.
However, as you could see price has breached above the downward channel demonstrating bullish momentum. This strength of the bullish momentum can be argued through the Divergence seen on the RSI and the chart. This therefore, provides us the extra confluence of a potential mini corrective downward structure to retest the upper trend line of the channel before a possible continuation to the upside.
The “Management Level” can be a key indication if the short trade to the trend line is valid. This would be analyzed further on the weekly time frame. A break and close below this level would increase the probability of a retest of the trend line. Furthermore, the extra confluence adding to our decisions is the 200 EMA acting as magnetic support around the target area and the upper trend line.
On the other hand, if price breaks above its 8 year high 125.920 then we can see further bullish momentum to the upside of 133.500 then up to the Red Box. As of now price is hovering around the neutral zone, as we are not trading directly off the Monthly chart we are looking for the short setups in regards to the potential downside movement.
