We have just closed our long position towards 7147-fiat on a decent profit. As of now, we are waiting for the price to attempt a breakout, which automatically influences us to put our breakout strategy in place before anything else. That said, if the price manages to cross above 7147-fiat, our interim resistance for a very long time, then it would have us put a long position towards 7275-fiat, our primary upside target. A further break above the upside target would clear our position towards the 38.2 Fibonacci retracement level at 7469-fiat.
Not to forget, that our stop loss during the long positions will always be 2-pips below the entry point.
Looking the other way around – we also expect a pullback from the resistance of the prevailing descending channel. Should it happen, it naturally influences to switch to intrarange strategy. That being said, a pullback from 7147-fiat would have us put a short position towards 7000-fiat, our psychological support at this moment. A further break, and we’ll look to retest 6856-fiat as the new interim support. A stop loss a two-pips above the entry point will protect us from potential bias boomerangs.
Trade safely!
