EUR/USD Daily Video, May 15, 2018

[Sive Morten]

Good morning,

EUR acurately has hit our 1.20 intraday target and turned down, which keeps valid our expectation of DRPO "Buy" pattern on daily.



The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[adoramus]

Hi, what is DRPO buy pattern? What does DRPO mean?

 

[WaveRider]

Hi, what is DRPO buy pattern? What does DRPO mean?

It's in the FPA school.

 

[WaveRider]

Hi Sive, in the run up to today's price action, you posed either the DRPO or the B&B sell as the two possible scenarios to watch for. Looks like were going to get the DRPO.

1. Is it possible we'd have gotten neither of those outcomes? Could price have had a minor reaction at this strong support, then continued to race down being neither B&B nor a DRPO?
2.I'm guessing since we had strong enough initial rejection of the support last week, we expect the markets to recapitalize and shake out the other market players during the DRPO? If there had only been some consolidation and then a close below the strong support, we would have anticipated just continuation down instead of a retracement?

 

[Sive Morten]

Hi Sive, in the run up to today's price action, you posed either the DRPO or the B&B sell as the two possible scenarios to watch for. Looks like were going to get the DRPO.

1. Is it possible we'd have gotten neither of those outcomes? Could price have had a minor reaction at this strong support, then continued to race down being neither B&B nor a DRPO?
2.I'm guessing since we had strong enough initial rejection of the support last week, we expect the markets to recapitalize and shake out the other market players during the DRPO? If there had only been some consolidation and then a close below the strong support, we would have anticipated just continuation down instead of a retracement?

1. Sure. Sometimes this happens, market just doesn't give 2nd close above and turns to dropping. Or - DRPO "Buy" Failure, if we've got 2nd close above 3x3, but no upside continuation.
2. Well, one of our reasons, why we think that retracement has better chances to happen, compares to last week and ignored support - is weekly Oversold. It holds market and doesn't let it to continue action down almost physically. This is strong stimulus. And if having this stimulus on background we still will get scenario that you're talking - yes, this will be strong bearish sign. If price, having all this bullish stuff will ignore it - this will mean something.