All depends on strong return back of USD starting from this September (which I expect)...
Case (1) - A triple bottom formation is about to be confirmed. Most probably pricing just above 112 would ensure upward rally, and the ordering of moving average lines has to come in correct position.
Case (2) - Price may drop back to 108-109 band and may bounce back from this level. (Fibo 38.2 of 2015-2016 decline and Fibo 50.0 of Jul-Dec.2016 rally overlap in this region, which is the base of current triple bottom.
Case (3) - Price may further drop to 106-107 region. Here we have the long-term support line extending from 2012 and tested four times in 2016. Also Fibo 61.8 of Jul-Dec.2016 rally falls in this level.
Case (4) - If price drops below 106 with a weekly close, the strategy fails.
Targets may be set as 115 - 118 - 125.
Obviously, stop loss would not work in this strategy which requires a considerable account margin. Hedging with inverse positions at critical levels is more suitable.
Case (1) - A triple bottom formation is about to be confirmed. Most probably pricing just above 112 would ensure upward rally, and the ordering of moving average lines has to come in correct position.
Case (2) - Price may drop back to 108-109 band and may bounce back from this level. (Fibo 38.2 of 2015-2016 decline and Fibo 50.0 of Jul-Dec.2016 rally overlap in this region, which is the base of current triple bottom.
Case (3) - Price may further drop to 106-107 region. Here we have the long-term support line extending from 2012 and tested four times in 2016. Also Fibo 61.8 of Jul-Dec.2016 rally falls in this level.
Case (4) - If price drops below 106 with a weekly close, the strategy fails.
Targets may be set as 115 - 118 - 125.
Obviously, stop loss would not work in this strategy which requires a considerable account margin. Hedging with inverse positions at critical levels is more suitable.