Get Prepared for a bull run
ON the monthly Time frame, we see that the market was rejected to the upside after making a retracement. And it is important to note that level was a nonetheless perfect spot for that retracement because it aligns with the 38.2 fib level. The situation is more interesting on the weekly because, after breaking the demand area created on the weekly we saw that the market came back to test back that level of demand . And apart from that, we see also that it created a W formation, and after the creation of the W formation we should expect the market to come and test the neckline before continuing the move to the upside (In fact this is what we said on our previous update, and things went as planed). On the Daily, the situation is more clear, the price is coming to test back the the trending which happens to be in the same area of the weekly support.. Everything is in harmony from the Monthly to the Weekly. But before we show how we can approach the situation, we want to see what the institutions and the banks are doing .
With the last report, they opened 3K longs once more and closed 15K shorts (very massive) for the EUR, and on the MXN, the opened 1K longs and also 1K shorts.. Making the EUR way more stronger than the MXN.. Right now technically and Fundamentally everything is in confluence.
SO the best way to approach this situation is, we are going to be monitoring price action on the Weekly support, if there is a change of trend on the 4H TF, then we are going to take a long with a good risk reward and a very good probability to the upside
With the last report, they opened 3K longs once more and closed 15K shorts (very massive) for the EUR, and on the MXN, the opened 1K longs and also 1K shorts.. Making the EUR way more stronger than the MXN.. Right now technically and Fundamentally everything is in confluence.
SO the best way to approach this situation is, we are going to be monitoring price action on the Weekly support, if there is a change of trend on the 4H TF, then we are going to take a long with a good risk reward and a very good probability to the upside
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