Happy Friday Traders!
I wanted to bring to your attention a potential trading opportunity for the USDTRY pair.
I’ve been watching this one for a while and price has continued to respect both the upper and lower boundaries of this trading range for the past couple of months. Consider the 4 hour chart below.
A trader has a couple of potential opportunities here, either trade the range or trade a breakout in either direction. Typically, the longer price ranges the more explosive the breakout, so this is definitely worthy of a watch to see what happens next. Often, when price breaks out of an area of support or resistance, it will retrace to the breakout area, potentially offering another trade setup, or an opportunity to add to a position depending on your trading style/strategy.
If price was to break out, a trader could potentially look to take full or partial profits, or move stops to break even around/near the S/R levels shown in the Daily chart below. Notice the gap on the lower support line which if price breaks down should act as a magnet for price. Alternatively, should price break upwards, we should see price approach old highs.
As always, consider risk before placing any trades and have a great weekend, traders.
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Source: Vantage FX Blog