Currently watching the 1H timeframe, as price have touched once more an important demand zone (0.9593 - 0.9620), and I was waiting for a confirmation that price might have a good bounce from this zone again. We have bullish divergence on the RSI as price touches the zone.
Price already touched the zone and booked 26 pips, but I did not take it, I am waiting for a bigger move, at least with 1st target at the supply zone above (0.9681 - 0.9698), meaning a nice 60 pips profit with 27 pips of risk, wich stands for a very nice 2:1 RR.
We know from supply and demand rules that when a level have been touched many times, demand in this case have been consumed every time, but remember that whenever price gives you clues about what it might do next, in this case, a nice bullish divergence on RSI when price is touching a demand zone. This for me is a buy opportunity, so I would take it on Monday morning if price haven´t breached the zone already.
Good luck everyone and happy trading next week!
Price already touched the zone and booked 26 pips, but I did not take it, I am waiting for a bigger move, at least with 1st target at the supply zone above (0.9681 - 0.9698), meaning a nice 60 pips profit with 27 pips of risk, wich stands for a very nice 2:1 RR.
We know from supply and demand rules that when a level have been touched many times, demand in this case have been consumed every time, but remember that whenever price gives you clues about what it might do next, in this case, a nice bullish divergence on RSI when price is touching a demand zone. This for me is a buy opportunity, so I would take it on Monday morning if price haven´t breached the zone already.
Good luck everyone and happy trading next week!