Breakout on The USDTRY
We last posted on the USDTRY on April 11th when price had closed above the round number 4.0000 and was suggesting further bullishness with 3 further bars after the breakout.
Aggressive traders would have been triggered long into this trade but held tight and waited for a retest of the resistance-turned-support zone of November.
We can see that most of April was spent in a breather area that was made up of what we call an XYZ pattern followed by the breakout of the high of April on the close of yesterday’s bar.
Ordinarily, we would have placed a trade on yesterday’s breakout but given that NFP was out today, we chose to stand aside and avoid getting caught in erratic price movement. We can see that NFP simply moved price in the direction of the bull trend.
Given that price has now broken out and the NFP is out of the way for another month, we will now look to place long trades. We would then like to see price move towards the next round number of 4.5000 and beyond offering strategic compounds along the way.
This is setting up nicely for what could be a long term bull trend. When our edge appears we take the trade.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!