Reply To: Exercise No.3
I would like a bit of advice on the attached EURUSD chart.
It has been in an uptrend since December 2015 and the major trend line has currently been drawn between this date and 10th March 2016 however, a recent high was made on 3rd May 2016 and the recent low just prior to that was on 25th April. If the major trend line is connected to this point it will cut through a lot of the previous price action. Would it be valid to connect the start point with 25th April point, or leave the line until it can be drawn so that it does not cut previous price action?
The control is currently with the buyers but has recently retraced to the MOR. The market is unsure which way it wants to go at the moment. Understandable with Brexit a few days away. I have added what I consider would be appropriate counter trend lines and some do indicate support and resistance but I would not be confident trading off any just yet.