This pair is consolidating into a converging triangle. It has been consolidating for the last several days in a slightly upwards direction. This is not an unusual situation following a big move as the market tries to digest the change in price and decide what is next. I think it might be close to a break out of the triangle and want to be ready if it is.
I'll buy on a close of the hour bar above the upper line and sell on a close of the hour bar below the lower line. Usual rules for moving to break even and trailing stops. On the initial stop loss, I think I'll use 100 pips. That gives the pair some room to move, but not so much that if we are taken out quickly, it would be devastating. If the trade starts moving against us and closes above the opposite channel, I'll likely get out even if the stop has not yet been hit. I'll keep you posted.
Happy Trading!
