Friday, May 1, 2020 5:03 AM EST
Thursday gave us a break out from the range in which price has stalled over the last few days. The ascending triangle that formed on the H4 time frame can be seen as a sign of a bullish pressure.
The definition of an ascending triangle says that the triangle has lower lows and highs stalling on one level. Lower lows tells us that the price is pushed up. Highs are stalling on one level which is hard to break and building pressure for a break up. In our case the level for highs was at 1.08846.
Before breaking up from the ascending triangle, the price pulled back below the trend line, which was a false break. After a false break downwards, the price moved up and now is heading towards a resistance level at 1.09860.
I have drawn trend lines to show how the market could move in the next few days.
After breaking up, the price stalled on the next support level at 1.09371 and from there we will see where it will move.
As it looks now we could see the price moving to a previous high level at 1.09860 from where we could see small pullback because of buyers cashing out. Before making that pullback we could see price making a pullback to 1.09028 level and then continue moving up.
While there is a large H4 candle that has made a breakout, the price could hold direction and continue moving up.
If there is no price action signal toward a bear direction when the price reaches the 1.09860 level, the next resistance level is at 1.10373.
Have in mind that today is Friday and some of the usual price action strategies will not work as they should because it is a day when traders are moving out of the market.
Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By ...
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Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by author. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, spot Forex, CFD’s, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material provided by this author. The past performance of any trading system or methodology is not necessarily indicative of future results.
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Yes, being Friday, we'll have to wait and see what happens next.