During my last post I mentioned that a break above parity for this currency pair was in the offing. Well, there is likelihood that 1.2 levels might be hit in the next couple of months if not weeks. As viewed from the weekly and monthly chart, the upside momentum is strong and since last month price failed to reversed but instead move sideways with the 1.03 price tag acting as resistance, this will likely change this week. Since we have the NFP this week, there is a strong case for a move up.
Today I shall look to go long after the close of the current candlestick since there is a buy signal already printed and look to leverage my position since positive fundamentals is expected from the US later in the NY session when the Manufacturing PMI is going to be released with 53.7e from last month’s 53.2 recorded last month.
With this, trade as follows:
Stop Loss: 1.02
Take Profit: 1:5 Risk Reward Ratio-300 pips minimum.
Have a good trading day.