EUR/USD Update, Fri 16, July
Good morning, everybody
There was a tough day yesterday, and market demonstrated real strength.
My confluence resistance at 1.2760-1.2780 was absolutely disrespected by the market. Sometimes it happens, but rarely enough. So, what do we have now...
First of all, taking in consideration strength of moving from COP to OP and abscence of any retracement when market has reached an OP, I expect move to XOP=1.3133 and weekly Confluence resistance area in medium term.
At the same time, market has reached and overbought condition yesterday. Today is a Friday and this combination not for any Buy and Hold positions. It's possible for Scap Buy though, but not for holding.
Also want to noting here that very often market returns to disrespected Confluence areas at retracements. So, If retracement will start - 1.2760-1.280 area is a very probable low for it.
From the trading possibilities for today I see a possible B&B Buy on Hourly chart. It's impossible to predict from which area it will start, but if it will start from 1.2870 - then the target will be 1.2930. It's a scalp trade. But 1.2870 is just an example - wait for particular reversal signals on support levels.