Sive Morten
Special Consultant to the FPA
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EUR/USD Update, Wed 14, July
Good morning, friends
Yesterday market has confirmed our weekend's suggestions about shallow retracement and move to OP target - Market has almost reached yesterday weekly Pivot support 1 area at 1.2511 and then started move to OP.
Nevertheless, OP has not been reached yet. Although sometimes it happens, that market does not reach OP for some pips, but it quit rare stuff. So, odds suggest that OP should be reached.
Look at hourly chart (we have an hourly DRPO BTW), market turns to the triangle consolidation. Just above the market - very strong resistance that includes - weekly Pivot resistance 1 at 1.2753, And 1.2760-1.2782 Confluence resistance and Agreement. Market should turn to downside from this area, or at least make a pullback. Moreover, in weekly research I've told that if market will reach OP on Wednesday - AB and CD legs on daily chart will be harmonic, so we'll see. Ok, what is a strategy for today's action:
I expect failure triangle upper breakout. If market will break triangle to the upside - look for sell signal around 1.2760 area - Wash&Rinse, RRT or something like that. Bearish Divergence is also possible.
If market will break triangle to downside first - don't be hasty to open short positions, because OP will not be reached yet in this case. It also can be a failure breakout. Market should move below 50% of a strong up bar, before we can talk about starting downmove.
That's being said - wait for failure upper breakout and look for sell signal in 1.2750-1.2760 area.
Good morning, friends
Yesterday market has confirmed our weekend's suggestions about shallow retracement and move to OP target - Market has almost reached yesterday weekly Pivot support 1 area at 1.2511 and then started move to OP.
Nevertheless, OP has not been reached yet. Although sometimes it happens, that market does not reach OP for some pips, but it quit rare stuff. So, odds suggest that OP should be reached.
Look at hourly chart (we have an hourly DRPO BTW), market turns to the triangle consolidation. Just above the market - very strong resistance that includes - weekly Pivot resistance 1 at 1.2753, And 1.2760-1.2782 Confluence resistance and Agreement. Market should turn to downside from this area, or at least make a pullback. Moreover, in weekly research I've told that if market will reach OP on Wednesday - AB and CD legs on daily chart will be harmonic, so we'll see. Ok, what is a strategy for today's action:
I expect failure triangle upper breakout. If market will break triangle to the upside - look for sell signal around 1.2760 area - Wash&Rinse, RRT or something like that. Bearish Divergence is also possible.
If market will break triangle to downside first - don't be hasty to open short positions, because OP will not be reached yet in this case. It also can be a failure breakout. Market should move below 50% of a strong up bar, before we can talk about starting downmove.
That's being said - wait for failure upper breakout and look for sell signal in 1.2750-1.2760 area.