Market sentiment has been bearish in recent times and yet this pair keeps grinding higher. The daily chart shows a sideways trading bias with range tops near 1.3410/20. It’s the nature of the move higher which suggests to me that we will get more topside. It’s been a gradual grind higher and these sorts of moves are harder to turn around.
I expect to see a big fight happening above 1.3400 but watch for heavy trailing stops above 1.3425 and 1.3450. If they go off, we could see this pair trading close to 1.36 next week.
But, short-term bears will of course find excellent r/r in selling at 1.3410/20 with a tight-ish stop.