The analysis suggests that the pair is currently forming a rising parallel channel. It's important to note that a breakout on the downside of a rising channel tends to have a good success ratio, with a failure rate of less than 15%. Both a breakout on the upside or downside can present opportunities for entry into the market.

Here are the conditions for taking a long position:

If the security closes above the parallel channel on a 1day time frame, with the RSI (Relative Strength Index) above 53 (excluding cases where RSI is above 80), and the security is trading above the EMA (Exponential Moving Average).

On the other hand, the conditions for taking a short position are as follows:

If the security closes below the parallel channel on a 1day time frame, with the RSI below 40 (excluding cases where RSI is below 20), and the security is trading below the EMA.

Additionally, it's worth noting that the RSI has formed a symmetric pattern breakout. If this pattern confirms, it can be used as a further indication for entry in the corresponding direction.

Rising Parallel Channel

Aug 09 2023