Sive Morten
Special Consultant to the FPA
- Messages
- 18,654
Morning guys,
Yesterday was a bit dramatic action, as EUR has re-tested daily resistance and washed out previous tops. For us it was mixed session. It is good that we had no plans to go short, but from another point of view, our AB-CD retracement has not happened and we haven't got entry point. So, in fact this was blank day.
Now market shows signs of weakness. DAX index should open with gap up and usually it suggests some weakness in currency.
On 4H chart we have "222" sell pattern and its minimu target stands at 3/8 Fib support area around 1.1330-1.1340. Based on action that we had recently - it is not good idea to go long right now. Despite that we expect upside bounce in few hours as EUR stands at strong support cluster on 4H chart, we also watch for downside continuation after that:
In current circumstances, most probable pattern that could be formed here is H&S and "222" Sell as a part of it. Thus, bears, before taking short position should watch for clear patterns, while bulls should wait when downside drop will be finished or tops will be broken up.
Particularly speaking, our scenario suggests upside action somewhere to 1.14 area and then downside continuation to K-support around 1.1330-1.1340.
Yesterday was a bit dramatic action, as EUR has re-tested daily resistance and washed out previous tops. For us it was mixed session. It is good that we had no plans to go short, but from another point of view, our AB-CD retracement has not happened and we haven't got entry point. So, in fact this was blank day.
Now market shows signs of weakness. DAX index should open with gap up and usually it suggests some weakness in currency.
On 4H chart we have "222" sell pattern and its minimu target stands at 3/8 Fib support area around 1.1330-1.1340. Based on action that we had recently - it is not good idea to go long right now. Despite that we expect upside bounce in few hours as EUR stands at strong support cluster on 4H chart, we also watch for downside continuation after that:
In current circumstances, most probable pattern that could be formed here is H&S and "222" Sell as a part of it. Thus, bears, before taking short position should watch for clear patterns, while bulls should wait when downside drop will be finished or tops will be broken up.
Particularly speaking, our scenario suggests upside action somewhere to 1.14 area and then downside continuation to K-support around 1.1330-1.1340.
