That's right traders, it's my favorite currency pair again! Did you get the bearish move that I reviewed in my previous post about this pair? Read more on the link below:
Now, there are a few things that has developed since the bearish move completed that brings the market to a key level. Check out the chart below...
A simple price action trading strategy that works exceptionally well is using the bollinger bands, key support/resistance levels and candlesticks. As you can see this is the third time that the market will be meeting the 14.50 support area, coincidentally where the bottom bollinger band is, right? So once a buy signal prints while pinning the bottom bollinger on support, a low risk buy setup can be traded.
The alternate scenario is that the 14.50 support breaks in which case the bearish rally may resume. There are lower highs and equal lows visible on this chart that shows a bearish market structure which means that the support is likely to break.
NB: Take special notice of the bearish bars that are increasing in size. This is another sign that the sellers are active in the market and willing to drive price lower.
Price action will be key here, hopefully providing a signal candle for the bulls or breaking the support.
Let me know your thoughts in the comments!
Learn how to trade using price action and find setups like this one
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