Looking at the Monthly chart, we are currently retracing up the down leg seen to the left (the range we are trading in). We have closed above the huge bearish engulfing candle and are currently retesting this level of support (shown by the box). Given that we are a few days away from the monthly close, I want to see some buying here to fade last month's low as well as bullish accumulation to occur on the lower time frames.
I believe that this pair is still bearish , however I feel like price needs to make its way to 120, where there is untested supply on the monthly, 3rd test of the down trend line as well as a 78.6% fib retracement all lining up at the same level to entice more sellers to enter the market. The question here is are we going to build a bottom and go up from here? Or just break through support and die back down to 105's. Overall, not a bad area risk wise to go long with a stop under lows.
I believe that this pair is still bearish , however I feel like price needs to make its way to 120, where there is untested supply on the monthly, 3rd test of the down trend line as well as a 78.6% fib retracement all lining up at the same level to entice more sellers to enter the market. The question here is are we going to build a bottom and go up from here? Or just break through support and die back down to 105's. Overall, not a bad area risk wise to go long with a stop under lows.
