3 Confluences Align Are We Primed For A Move To 2.02 ??After finally breaking out of the long term resistance @ 1.91 area in July the market made a strong rally stopping shy of the 2.0 price level which as we have seen was a strong resistance level.
Is the sell off from this level just some profit taking and are buyers getting ready to position themselves back in the market around 1.91 for another push higher towards the Monthly's SUPPLY/SELL zone starting at 2.02.
From reading the charts I suspect this is the case as we have 3 confluences aligning around the 1.91 area.
Firstly is the newly created weekly DEMAND/BUY zone that caused the breakout of resistance and the move to the new trend highs. Given the speed of how price is retracing to this level should be an indication that buyers will likely enter here
Next is the newly created support level around 1.91 this was a previous resistance that got strong reactions in the past will this happen again but upwards ?
The 3rd confluence is the weekly trend line is in this area all these point to this being a great area to buy this pair.
What I want to see happen now for this pair is a move down towards 1.91 or lower and for price to start building some sort of support and sideways accumulation structure on the lower timeframes.
Then I will look for a 8hr,12hr or daily signal on my TRFX indicator to confirm my entry, stop loss will be based on the entry price.
First target will be the current high in the trend around 2 which will likely get a small reaction before the market breaks up higher towards 2.02 or higher.
For this move to be invalidated I would need to see a strong move below the 1.90 area and a weekly or monthly close.
This is how I see hope you enjoyed the read
