Weekly eur/pln market structure looks good, so I put in a foundation trade at 4.23 with a wide stop. After the weekly candle finished, I checked for CCI divergence & positioning on the COT report.
Today, CCI divergence is confirmed on the weekly & daily. The CFTC reports that dealers increased their euro shorts & non-commercials are taking profit on euro long positions this week.
Initial foundation trade (4.23) is a 1/3 bell, but looking at the DXY, not sure when I will add to it. So keeping a weather-eye on the DXY for now.
Update: added a bit of outside leverage to the trade, held for a couple weeks and eventually scaled out on the 4-hour chart; closed at a total of +18% of margin. this is an extremely volatile pair and my risk management model was definitely put to the test.