Morning guys,
Our tactic setup is done and now it is interesting what will happen next. Thus, EUR has formed bearish reversal session, failure to break our strong resistance level. It significantly increases chances of deeper retracement, as reversal sessions usually have continuation:
Indeed, EUR has turned down as soon as it hit 4H XOP target. But, unfortunately we do not have either pure DRPO "Sell" nor pure B&B "Buy". For Double Repo - it is a bit large difference between tops. Besides, EUR collapsed so hard that mostly completed minimal DR target @ 50% support area.
We do not have clear B&B "Buy" either, because market has shown close below 3x3 and interrupted thrust. But, abstracting from B&B, we still have momentum setup, which mostly the same as B&B in terms of market mechanics. As upside momentum is strong, we suggest that before downside continuation EUR should show deep upside pullback, somewhere to 50% or higher:
Approximately, overall price action within tod-tom action could look as follows:
My prophecy ends here
, but...
As soon as deep retracement will be done, following analysis of our EW experts, upside action should continue. Tomorrow we also have NFP release, so it will be interesting...