As predicted in our analysis over the last 2 day, there was a very strong bullish pinbar candlestick off of a key level, and then on the hourly charts there was a very strong bullish double bottom pattern. You can see those previous analyses here
and here
As I had mentioned, we simply needed a catalyst to push prices up and begin validating these bullish signals. That catalyst has come in the form of critical news announcements out of Australia. We have clearly broken the pennant pattern that I market on the chart and are on track to completing the bullish 1-2-3 reversal pattern. Once that happens, as they say "It's all over but the cryin", at least for the bears.
I had already entered the trade at .7490 with a stop loss at .7410 (just below the low of the bullish pin bar candle). Once the 1-2-3 pattern is validated I will then move my stop up to my entry point, essentially make this a risk free trade.
Remember though that while these are all very positive bullish developments, nothing is guaranteed. Reversals of long term trends are very difficult to reverse. Stay prudent and defensive while price breaks out or until the patterns are invalidated.
I had already entered the trade at .7490 with a stop loss at .7410 (just below the low of the bullish pin bar candle). Once the 1-2-3 pattern is validated I will then move my stop up to my entry point, essentially make this a risk free trade.
Remember though that while these are all very positive bullish developments, nothing is guaranteed. Reversals of long term trends are very difficult to reverse. Stay prudent and defensive while price breaks out or until the patterns are invalidated.