Technical Outlook and Chart Setups:
As it was discussed yesterday, the single currency pair produced Bullish Engulfing Pattern just shy of 1.4900 level. Longs were recommended around 1.5 level and prices still have a bit more room left on the upside. Sequence of lower lows and lower highs is forming at the moment, so it is suggested to book small profits on long positions. As depicted above, the downside Fibonacci extensions spread through 1.4900 (shown in red). Furthermore, trend line convergence is also at the same level. There is a possibility that prices fall back to 1.4900 and bounce thereafter. On the other side, bulls will gain more makeweight if prices take out 1.5250 resistance from here on. Keeping it simple, taking small profits should be the trade mantra. 1.4900 remains key to the bears, while 1.5250 remains key to the bulls.
Trade Recommendations:
Book profits from longs taken yesterday. Scalp between 1.4900 (go long) and 1.5100 (go short).
Good Luck!
