Forex FOREX PRO WEEKLY, December 16 - 20, 2019

[Sive Morten]

Morning guys,

Price action on EUR is not simple and needs careful attention to understand what is going on there. In fact, the trading plan that we've prepared in weekend is still valid. On daily chart trend still stands bullish and we consider long entry right now as market has reached predefined strong support area:

On 4H chart EUR hits K-support area. Downside action that we've discussed yesterday is done for now. H&S is difficult to recognize here, but this fact has no decisive meaning in current situation. Strong support is what really matters. As we said in weekend - this is an area where we consider long entry. Take a look that EUR also has formed reversal candle there and bullish engulfing pattern. Upside bounce has started already. As we do not know how strong it will be - either pullback or real upside continuation, we need to move stops at breakeven as soon as possible:

On 1H chart additionally we have bullish divergence and minor W&R of "B" point lows. Here we suggest that market has to reach 1.1150 area. This is minimal target. Then we will see what will happen - either EUR will keep going higher and challenge 1.12 daily resistance, or, it turns down again.

 

[Sive Morten]

Morning guys,

Markets stand quiet and it is really difficult to find something valuable. The EUR is not an exception. Yesterday we got just minor target around 1.1150 resistance area, then market has dropped.

Currently price stands at important level, because breaking of 1.11 exceeds harmonic retracement value and suggests deeper downside action. The one thing that we still keep an eye on here is potential bullish grabber as EUR flirts with MACDP line:

On 4H chart you can see how it has happened - indeed upward bounce from our long entry point, which is K-support area but just to 1.1150 level. Then EUR has formed bearish reversal candle. This type of action makes us think that it is not good time for long entry right now. Normally, bullish market should continue upward action from here, as it is not at overbought and hit just COP target. But this has not happened. Thus, it means that it would be better to wait for better bullish context here:

For the bears it is a bit different problem - no attractive objective point. Ones that we have here stand too close and do not provide good risk/reward combination. In fact, guys, we have triangle consolidation forming here. And it seems that we have to wait when it will be broken. Currently market is thin and becomes thinner day by day due coming holidays. Let's see, whether we will get something interesting on next week: