Buy above 0.7969. Stop loss at 0.7911. Take profit at 0.8066.
Reason for the trading strategy (technically):
Price has made a recent bullish exit of our triangle formation. We remain bullish above major support at 0.7969 (Fibonacci retracement, horizontal overlap support) and we expect to see a bounce above this level for a rise at least to 0.8066 resistance (Fibonacci extension, horizontal swing high resistance).
RSI (34) is seeing pullback support to our descending resistance-turned-support line and also sees an intermediate ascending support line holding it up nicely.
Correlation analysis: We are expecting commodities strength with AUDUSD and NZDUSD both seeing bounces.
Reason for the trading strategy (technically):
Price has made a recent bullish exit of our triangle formation. We remain bullish above major support at 0.7969 (Fibonacci retracement, horizontal overlap support) and we expect to see a bounce above this level for a rise at least to 0.8066 resistance (Fibonacci extension, horizontal swing high resistance).
RSI (34) is seeing pullback support to our descending resistance-turned-support line and also sees an intermediate ascending support line holding it up nicely.
Correlation analysis: We are expecting commodities strength with AUDUSD and NZDUSD both seeing bounces.