Sive Morten
Special Consultant to the FPA
- Messages
- 18,702
Morning guys,
On daily EUR we do not have significant changes - price is still coiling around 1.17-1.1750 area. Still, overall balance has changed. As longer market stands tight under resistance as more chances on upside breakout attempt.
Now it seems that no other deep retracement will happen and we should treat Friday spike down (on NFP release) as completion of B&B. Sometimes it happens that price doesn't reach B&B target - rare, but happens.
It means that now we need to think about bullish engulfing and its potential target, as upside action could start very soon, I suppose:
On 4-hour chart market stands around 50% Fib level and WPR1. Here we easily could recognize the shape of reverse H&S pattern, although arms are too small for classical H&S - they are probably 1:2 to the head, but this is not disqualifies pattern itself. If our suggestion is correct - the target will stand at 1.1850 and our ceil around daily OB level:
Hourly chart is important for understanding of reasons, why market has more chances to go up right from here. Take a look reaction on NFP - this was rather positive report. But it was able to trigger just minor and short-term spike down. It means that EUR purchases are quite strong. Any hint of retracement is buy out. Market stands dense in tight range of arms of potential H&S - it reminds preparation for breakout:
On daily EUR we do not have significant changes - price is still coiling around 1.17-1.1750 area. Still, overall balance has changed. As longer market stands tight under resistance as more chances on upside breakout attempt.
Now it seems that no other deep retracement will happen and we should treat Friday spike down (on NFP release) as completion of B&B. Sometimes it happens that price doesn't reach B&B target - rare, but happens.
It means that now we need to think about bullish engulfing and its potential target, as upside action could start very soon, I suppose:
On 4-hour chart market stands around 50% Fib level and WPR1. Here we easily could recognize the shape of reverse H&S pattern, although arms are too small for classical H&S - they are probably 1:2 to the head, but this is not disqualifies pattern itself. If our suggestion is correct - the target will stand at 1.1850 and our ceil around daily OB level:
Hourly chart is important for understanding of reasons, why market has more chances to go up right from here. Take a look reaction on NFP - this was rather positive report. But it was able to trigger just minor and short-term spike down. It means that EUR purchases are quite strong. Any hint of retracement is buy out. Market stands dense in tight range of arms of potential H&S - it reminds preparation for breakout: