A day before the price broke the downtrend line here and closed above it, so today I was watching for what kind of continuation we’re gonna have. To tell the truth I really like what I see now - yesterday’s candle here clearly confirms that last session’s breakout was for real. My long bias would be even stronger if they’re increasing volumes these days - I would not call these volumes significant so far, but they are above average and to me they look rather steady.
In most models I would wait for at least some consolidation after the breakout but this is not a case: a pair delivered a long enough descending conso just below the trend line. We also see here a clear price contraction (again in its descending form) so it looks like we have got a solid number of signs confirming that we have a real move.
Among various scenarios of possible continuation my favorite is an immediate start of a new local trend – a picture similar to the one we just saw in EUR/CHF after it broke its short term down trend in the end of June.
My personal plan is rather straightforward – I’m gonna enter either on test off of 0.7370-800 zone or on retracements if it starts trending right away.
As for trade potential and targets, I see no serious bumps until 0.76500 except round number of 0.75, looking at a bigger picture I’m gonna set an overall target for the core into 0.78000, which as I assume is gonna take from 2 to 4 weeks of wide breath uptrend.
