Last week, the USD gained some strength and went up on the chart to test the Monthly R1 zone at 107.49. This zone on the first test served as strong resistance structure where price tested several times but was unable to break above it. Then on Friday after the last test which also failed to break, price was pushed down by bears for about 70 pips where it then closed for the weekend. For this week we expect one more test of the Monthly R1 area as we think there may also be more short orders waiting to fill in anticipation of a short move, maybe down to Monthly Pivot Point at 106.06. For position taking in the market, we will be waiting for the price to test again the 107.49 area and if we get some bearish candle formations or patterns we may take a short position. Our KILL ZONE is the highlighted area around Monthly R1 so if we get signals to enter the market, this will be the area where we may open a trade. Our analysis will be not valid anymore if the price fails to test the Monthly R1 or the price tests this zone, breaks it and closes above it.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.