27 Oct 2016



The rate is now stuck in quite a tight range after hitting the 61.8% head and shoulders breakout target (read the full trade idea here) after the bouncing lower from the rising channel's resistance and bouncing back higher from the channel's lower boundary.

The upside seems to be contained by the former head and shoulders neckline which has become the new resistance.

I will be looking at both - long and short trades with this one.

For a long trade I will need to see a break above former neckline at 0.7260 and will be targeting the channel's resistance once again (0.7500-0.7600)

For a short trade I will need to see a break below the channel's support and the already mentioned 61.8% breakout target at 0.7060 which would then open up a way towards the 100% and 161.8% breakout targets at 0.6950 and 0.6785.


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