This pair is consolidating after a recent drop. It has been trading in a 110 pip or so channel for more than 48 bars (hour bars) now. Also, there is a channel within a channel forming (note the dashed lines). This inner channel has been forming for 12 hours with only one breach (in which case, it did not close below the sub-channel line. I will buy on a close above the upper channel and sell on a close below the lower channel. You might consider entering into a half position on a close above or below the sub channel, then filling out your position if it moves above the main channel line. I will probably trade it that way (providing I'm able to watch it while at work today). If it breaks up I will use the 800 sma as a profit target. If it breaks down, it could go as low as 1.2450. I'll keep you posted.Happy Trading!
