I have two different perspectives: a short-term SELL trade for the upcoming week and a long-term BUY.
After a significant break and close of the 0.655 support last week, the next potential level for this pair could be the 0.64 zone. This area marks the untested Weekly DEMAND/BUY zone that was established last year, following a rapid drop to the MONTHLY DEMAND/BUY zone at 0.61.
Comparing the momentum of last year’s drop and rally with the current price movement, the difference is notable. Both the drop to and rally from the 0.61 level were swift, characterized by large candles. The current price movement, however, is rather choppy, alternating between small drops and pauses.
The 0.64 level appears promising for a BUY entry point. It aligns with both dynamic trendline support and the Weekly DEMAND/BUY zone. I’ll be watching this area closely for potential BUY entries, using the TRFX indicator from the 8hr timeframe and up.
On the chart, I’ve marked the likely path for this pair, though please note it may still drop. My stop level will be set well under last year’s low, with targets extending up towards 1.70. I will provide more details when the trade triggers.
For my short-term SELL idea, I’m predicting a brief rally early next week back up to the previous support around 0.655. This will be my SELL entry point, targeting 0.64 or below.
As always, ensure proper risk management. Trades will be updated once they are entered. Happy trading!"
Remember, even the best analysis can be wrong due to the unpredictable nature of the markets. Always use proper risk management and never risk more than you can afford to lose.