Breach of upper and lower trendlines at the same time mean the trend is not clear, choppy and subject to bad trades. If for an uptrend, price action breached the lower trendline then it’s ok cause price is trying to build momentum; however, if for an uptrend, price action breached the upper trendline and came back to the range, then it means price has lost momentum and therefore no long trade should be placed.
FX markets have been very volatile. 80% of my trades were stopped in the past 3 months. It really shakes my confidence now. I start to doubt my strategies. But then again, i guess everyone else probably is experiencing the same struggle now. Active management should add value because you put your effort into the analysis. Hope this is temporary. Market will normalize again.
Ever since the swiss central bank debacle, i’ve been weary to trade this pair. But EC is making progressive changes in momentum to the upside. While i can’t find any fundamental evidence to support this assumption, it’d be interest to see if it can break to the upside. I’m waiting for PA to test 1.0640 and if it breaks this level, it should go at least 1.0684.