For those that have not bought this pair, now is a good time. The retracement provides a relative cheap price level to purchase. Got into a bit of a mishap trading on a pre-determined support zone.
The trade on the final test worked out for a little while before price broke out below. Price fell to 118.04 before what we presume to be traders buying back into the long term trend. As the title says, this is a “fresh” demand zone.
The horizontal line marks the furthest reach of the candlestick lows. This level only proved significant on December the 14th and 15th of 2014 when it served as a support turned resistance. How it, still, is not very significant as the sell off signal would have been generated from the double or triple top (I’m not too keen on terms) formation and then broke under the neck line.
If this pair ends up resuming it’s long term ascent, I would mark and watch this reversing point as a fresh level. I would say this would be approximately 118.047 on the low to 118.367. In the mean time, I conservatively re-entered this trade at this new level with pretty much the same stop as before.