Sive Morten
Special Consultant to the FPA
- Messages
- 18,699
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.
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.