EUR/USD Market Recap 2012-08-06
Legend:
circles/ ellipses:
blue circles/ellipses: price reaction at support/ resistance
green circles/ellipses: bull/ bear flags/ consolidations
red circles/ellipses: timing setup
black thick circles: see chart comments
Lines:
purple line-monthly S&R/ orange line-weekly S&R/ pink line-daily S&R/ red line-4-hour S&R/ blue line-1-hour S&R/ green line-5 min S&R/ brown line-necklines and gaps
SMA's:
black line-200 SMA, purple line-20 SMA, red line-10 SMA
Pivots on Charts
Today, in the Asian session the Euro triggered/ cleared the stop and limit orders above the high of last week and then started to retrace back at the daily 61.80 % fib retracement and the weekly 10 SMA
The solely clearing of stop and limit orders at striking price points (low/high) is a typical market behaviour/ target particularly at the first test of these levels - false breakouts/ non confirmation.
On the 5 min chart we had two pin bars which closed in the price range of the preceding 5-min candle (price rejection/ non-confirmation). Both pin bars led to a reversal, whereby the first pin bar cleared the stops below the recent low which often increases the chance of a price reversal - stop clearing accomplished. We also had a H&S on the 5 min chart and market reached the H&S target (neckline= brown line).
Technical Chart Analysis (EUR/USD) Euro to US Dollar - Forex market
Legend:
circles/ ellipses:
blue circles/ellipses: price reaction at support/ resistance
green circles/ellipses: bull/ bear flags/ consolidations
red circles/ellipses: timing setup
black thick circles: see chart comments
Lines:
purple line-monthly S&R/ orange line-weekly S&R/ pink line-daily S&R/ red line-4-hour S&R/ blue line-1-hour S&R/ green line-5 min S&R/ brown line-necklines and gaps
SMA's:
black line-200 SMA, purple line-20 SMA, red line-10 SMA
Pivots on Charts
Today, in the Asian session the Euro triggered/ cleared the stop and limit orders above the high of last week and then started to retrace back at the daily 61.80 % fib retracement and the weekly 10 SMA
The solely clearing of stop and limit orders at striking price points (low/high) is a typical market behaviour/ target particularly at the first test of these levels - false breakouts/ non confirmation.
On the 5 min chart we had two pin bars which closed in the price range of the preceding 5-min candle (price rejection/ non-confirmation). Both pin bars led to a reversal, whereby the first pin bar cleared the stops below the recent low which often increases the chance of a price reversal - stop clearing accomplished. We also had a H&S on the 5 min chart and market reached the H&S target (neckline= brown line).
Technical Chart Analysis (EUR/USD) Euro to US Dollar - Forex market