We approach the analysis of this pair based on the weekly timeframe. In this pair we see that price has been trading on an uptrend for two years. On the lower boundary of the channel, prices have formed a bullish engulfing candle. This week’s candle has engulfed the previous three weeks candle, indicating a strong bullish push on the pair in line with the upward price channel.
The formation of the bullish engulfing candle shows that there’s a strong bullish momentum after the bearish retracement. This implies rejection of the previous bearish move. We will be analyzing for buy price action signals in the lower time frames of the daily and the 4-hour as long as the bulls can sustain their upward push. Waiting for price confirmation is paramount as they help us not to get faked out.