That high has been broken in today's trading bar, reaching 0.9917. That tells me basically two things... price will go higher but has some resistances to overcome first. Second, a retracement is more than likely to occur soon. If price makes a breakout of its previous high, the next obvious resistance would be the 1.000 which is relatively close to price action. The retracement should occur eventually and a possible retest of its previous resistance zone, transformed now in support, around 0.9400 (0.9380/0.9420). A trade could be trigger here with a first target at 1.000 and a second target just as far as price wants to go through a trailing stop. Right now stochastics is overbought and the possible retracement could follow.
The daily presents more data to analyze. The trend is clearly up so why I would like to trade against it? A correct move would be wait for a retracement and go long with the flow. Today's bar is not closed yet but is showing a reversal candle. I've drawn an upward trend channel which has broken to the upside; I also have drawn a regression channel which is still valid. A break to the downside would mean the start of the retracement and a possible test of the lower line of the channel which coincides with a previous resistance zone. We can see there tuesday's candle with a long lower shadow, which seemed to me by that day, a possible break but resulted in a false break out. Price is really close to my extensions between 0.9926/50 where I was expecting to see the retracement, but because the regression channel is holding, that zone might be reached. Because 1.000 is really close, I would not be surprised if price spikes that high before the decline. Stochastics is overbought and there's divergence on MACD.
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