Sive Morten
Special Consultant to the FPA
- Messages
- 18,706
Morning guys,
So, once again data release proves that it is tricky idea to gamble on its result. We will talk about CPI slowdown in our weekly report. Technically, EUR has short-term bullish context and we suggest that it should climb slightly higher.
Recently it hits daily resistance levels and OB:
But now price has pulled back a bit and EUR still has not completed the OP at 1.0420. We suggest that should be the nearest target that could be finalized by butterfly pattern:
On 1H chart retracement could turn to AB-CD pattern to 1.02-1.0230 area, but we treat this way as less probable than just "V" shape retracement. Mostly because major pullback is done after COP and market now stands very close to OP target. Besides, 1.0265-1.0280 is K-area and natural support zone that together with strong bullish momentum should hold price on a way up.
Until completion of 1.0420 area we do not consider any short positions. If you intend to buy EUR, as usual, you could either wait for AB-CD pattern, or split position in part or buy right here with initial stop under 1.0220 Fib level.
So, once again data release proves that it is tricky idea to gamble on its result. We will talk about CPI slowdown in our weekly report. Technically, EUR has short-term bullish context and we suggest that it should climb slightly higher.
Recently it hits daily resistance levels and OB:
But now price has pulled back a bit and EUR still has not completed the OP at 1.0420. We suggest that should be the nearest target that could be finalized by butterfly pattern:
On 1H chart retracement could turn to AB-CD pattern to 1.02-1.0230 area, but we treat this way as less probable than just "V" shape retracement. Mostly because major pullback is done after COP and market now stands very close to OP target. Besides, 1.0265-1.0280 is K-area and natural support zone that together with strong bullish momentum should hold price on a way up.
Until completion of 1.0420 area we do not consider any short positions. If you intend to buy EUR, as usual, you could either wait for AB-CD pattern, or split position in part or buy right here with initial stop under 1.0220 Fib level.