Sive Morten
Special Consultant to the FPA
- Messages
- 18,708
Morning guys,
So, as we've suggested Google and Microsoft have shown worse EPS numbers that it was expected by market. The difference is not big, but still... now all eyes on Fed.
EUR was not able to start upside bounce. And now situation shows more signs of uncertainty rather than clear trading setup. Despite the recent drop, we can't say that EUR has lost all chances to reach 1.0370 area. For example, it might be AB=CD and the push could come as from Fed comments as from GDP numbers on Thursday...
On 4H chart price is still inside the flag and coiling around major intraday support area:
Butterfly has not been formed yesterday, but we've got "222" buy instead. The destiny of 2nd retracement leg should be solved recently fast - around two major support levels, 1.0076-1.0115. For this scenario it is vital EUR to stay above them. Later other scenarios could be formed, such as double bottom, but, this is quite another story.
But for now - EUR has to stay above major 5/8 support to keep bullish chances. It is forming small reverse H&S after OP has been touched, by the way. Downside breakout will be irrational for bullish setup, because after reaching of just minor COP target - EUR has erased AB-CD pattern and drop under major support.
If you still consider any bullish trades here - keep an eye on these levels and the pattern that EUR is forming. The degree of uncertainty this week is high, because of multiple fundamental events.
So, as we've suggested Google and Microsoft have shown worse EPS numbers that it was expected by market. The difference is not big, but still... now all eyes on Fed.
EUR was not able to start upside bounce. And now situation shows more signs of uncertainty rather than clear trading setup. Despite the recent drop, we can't say that EUR has lost all chances to reach 1.0370 area. For example, it might be AB=CD and the push could come as from Fed comments as from GDP numbers on Thursday...
On 4H chart price is still inside the flag and coiling around major intraday support area:
Butterfly has not been formed yesterday, but we've got "222" buy instead. The destiny of 2nd retracement leg should be solved recently fast - around two major support levels, 1.0076-1.0115. For this scenario it is vital EUR to stay above them. Later other scenarios could be formed, such as double bottom, but, this is quite another story.
But for now - EUR has to stay above major 5/8 support to keep bullish chances. It is forming small reverse H&S after OP has been touched, by the way. Downside breakout will be irrational for bullish setup, because after reaching of just minor COP target - EUR has erased AB-CD pattern and drop under major support.
If you still consider any bullish trades here - keep an eye on these levels and the pattern that EUR is forming. The degree of uncertainty this week is high, because of multiple fundamental events.