I’ve marked two areas in the above chart that stand out to me. The first is the big bullish push (candle “1”) that we saw over a week ago. Price moved decisively against the overall trend and managed to pull off a strong close, which also coincided with month-end profit-taking, the implication being that it could just be that – profit-taking with the broader trend likely to continue.
However, the EURUSD seems to have other ideas. Price looks like a stealthy predator quietly stalking its prey higher, coiled up in anticipation; it managed to close above the recent swing high on Friday and break through the capping trendline that has been in play since early May. That “coiling” after the impulse is shown by price just hugging the highs I have marked “2”.
Is it time to go long? I’m always late to the party as a trend follower, so the long-party only starts if price managed to close about 1.1800. Arriving late is stylish. Also, cheaper in my experience.
I don’t have too many words for you to describe the CADJPY. Most of the Yen pairs are showing similar setups with varying degrees of bullishness in the background.
I just wanted to point out the 1-2 (impulse and wait) we’re seeing. It suggests a move higher.
I’m late to the Loonie party too. I like how price has managed to close below the trendline that’s held it for so many days – I think this move nicely opens the way for more downside.
How to sell? I’d like to see some pause/retrace/consolidation on the 4-hour chart, suggesting that price is keen on a move lower. I don’t see that yet, but I’ll be keeping an eye out.
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