Monthly and Daily Time frames are bullish
Have a pullback to the Senkou A (top of the cloud)
which is very strong support area. the prior 2 candles 1am and 2am est. were indecision candles
unable to push the market down.
2 Potential trades:
1. Cloud Bounce:
A. If we get a Bullish engulfing candle off of the cloud we can enter the trade.
Entry = approximately = 0.9130
Stop = .9077 (10 pips below the Senkou B - bottom of the cloud)
Risk = approximately 53-60 pips
Profit target: .9207 (10 pips before the Daily D ext. Blue line on chart)
Reward = 77 pips
RRR = approximately 1.5 - 1
2. Channel Trade:
If price penetrates the cloud, place buy limit orders at the Senkou B (bottom of the cloud)
This is a great support level and will provide at the very least a short term bounce back to the top of the cloud
or possibly a continuation upto the Daily D ext.
Entry = .9087
Stop = .9067
Risk = 20 pips
Profit targets: 1st= .9117 RRR = 1.5-1
2nd= .9207 (10 pips before the Daily D ext. blue line on chart) RRR = 6 -1 :)
** depending on the strength of the move up, you may want to move your stop to flat at the first pt.
and let it run to the 2nd pt.