At the moment (May 2020), if you look at the weekly chart, the currency pair has been in the corridor for a very long time and has not yet exited it.
The value of the corridor is 700 points, which means that it is quite possible to trade within this range within the day, but when approaching the borders, of course, it is better to close all deals, and it is better not to open new ones.
What's going on with the couple now?
Or sell from the upper limit, and buy from the lower one:
- The upper limit is approximately at around 1.0165
- Lower - 0.936
Forecast for 1-2 years ahead
Now, if you look at the global forecast, the price, having bounced as much as 3 times from the fibonacci level of 38.2, apparently intends to continue moving up.
The next mark is about 1.216, but this will not happen soon, as this is a weekly time frame, perhaps in the next year.
Let's go down to the TF below and see how you can trade in the medium term.
At the moment, a very beautiful triangle has been formed on the daily chart, and this is a trend continuation figure.
Apparently, there will be an exit of the price to the top, with further movement to break the weekly zone.
I recommend looking for deals on Buy when the price exits the triangle and take it for correction, Stop Loss must of course be set beyond some local minimum.
Why is it better to wait for the exit from the triangle?
In Forex, price manipulation is the norm, so if you open a deal right now, your stop loss at 99% will be hit, and with triangles being formed, false piercings happen often, so it’s better to wait))
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