Price action has respected the weekly trend-line time and time again, which gives confirmation that we are going with the trend which increases the probability of this trade.
(confluences)
1. Support level at 1.3333 has been extremely reliable, as this level has been playing the major role in candlestick rejection. Price action has been rejecting this line from august 2015.
2. Strong trendline was broken and the origin of the big break came from the 1.3333 area/zone.
Conclusion
The trade is highly favorable as the weekly trend is based off the weekly not (DAILY). Meaning price has more room to wiggle instead of movements being restricted. As stated before the support level @ 1.3333 is validated because price action was/is haveing trouble breaching the line/zone. Massive price action restrictions were happening in 2015 giving confirmation to the level. lastly, trendline broke from the 1.3333 meaning that there are still massive institutions with bullish (buying) power that breached the bears from this level.
(confluences)
1. Support level at 1.3333 has been extremely reliable, as this level has been playing the major role in candlestick rejection. Price action has been rejecting this line from august 2015.
2. Strong trendline was broken and the origin of the big break came from the 1.3333 area/zone.
Conclusion
The trade is highly favorable as the weekly trend is based off the weekly not (DAILY). Meaning price has more room to wiggle instead of movements being restricted. As stated before the support level @ 1.3333 is validated because price action was/is haveing trouble breaching the line/zone. Massive price action restrictions were happening in 2015 giving confirmation to the level. lastly, trendline broke from the 1.3333 meaning that there are still massive institutions with bullish (buying) power that breached the bears from this level.