FOREX PRO WEEKLY, January 25-29, 2016

[Sive Morten]

Possible Butterfly "SELL" on EUR/USD?

Or possible bearish Butterfly "Buy" , if EUR will drop below 1.07... That's why we've taken pause in EUR, since it just goes nowhere and other currencies bring better setups for trading...

 

[stelore]

Or possible bearish Butterfly "Buy" , if EUR will drop below 1.07... That's why we've taken pause in EUR, since it just goes nowhere and other currencies bring better setups for trading...

But hopefully we'll get some
hints/ideas soon about it, isn't it?

 

[Zilvinas]

Now on AUD. It forms interesting setup that could give us direction on short-term charts. If you remember at the end of December - we have traded bearish dynamic pressure that has led to solid drop and renew lows on weekly:
View attachment 23463
At the same time, as you can see butterfly has not quite reached target yet.

Sive, can we consider on AUD weekly chart a butterfly (as you say), if the second top of this butterfly is higher than the first? In my charts teh second top is a few pips higher.

 

[Sive Morten]

Sive, can we consider on AUD weekly chart a butterfly (as you say), if the second top of this butterfly is higher than the first? In my charts teh second top is a few pips higher.

No. Butterfly is valid only if all swings stand inside initial one. Besides, it's a bit too late to deal with it. NZD gives much better pattern on weekly chart.