Sive Morten
Special Consultant to the FPA
- Messages
- 18,628
Good morning,
Today, guys we finally will take a look at EUR. On GBP we haven't got DRPO confirmation signal, as no 2nd close below 3x3 DMA was. It means that DRPO setup is cancelled. May be GBP will show retracement, but definitely it will be triggered by some other pattern.
On EUR picture has become more interesting. As we've said yesterday - EUR retracement is based on butterfly "Sell" pattern and on Overbougt as on daily as on weekly chart. As a result, yesterday we've got pretty nice Evening star pattern and reversal candle right on top. Combination of these factors here makes us think that retracement should reach at least 1.2070-1.2090 daily K-resistance.
On 4-hour chart we have DRPO "Sell" that has minimum target right around WPP @1.2110. But it doesn't mean that market can't go slightly lower:
Mostly because DRPO itself takes the shape of H&S pattern on hourly chart. Since we see clear downside acceleration on CD leg of AB-CD pattern, chances that XOP target will be met are not bad. And it stands right around daily K-support - 1.2080 area:
So, agreement among different levels and extensions on different time frames looks interesting.
Today, guys we finally will take a look at EUR. On GBP we haven't got DRPO confirmation signal, as no 2nd close below 3x3 DMA was. It means that DRPO setup is cancelled. May be GBP will show retracement, but definitely it will be triggered by some other pattern.
On EUR picture has become more interesting. As we've said yesterday - EUR retracement is based on butterfly "Sell" pattern and on Overbougt as on daily as on weekly chart. As a result, yesterday we've got pretty nice Evening star pattern and reversal candle right on top. Combination of these factors here makes us think that retracement should reach at least 1.2070-1.2090 daily K-resistance.
On 4-hour chart we have DRPO "Sell" that has minimum target right around WPP @1.2110. But it doesn't mean that market can't go slightly lower:
Mostly because DRPO itself takes the shape of H&S pattern on hourly chart. Since we see clear downside acceleration on CD leg of AB-CD pattern, chances that XOP target will be met are not bad. And it stands right around daily K-support - 1.2080 area:
So, agreement among different levels and extensions on different time frames looks interesting.