Sive Morten
Special Consultant to the FPA
- Messages
- 18,644
Morning guys,
So, everything goes with our plan by far. EUR tests weekly K-resistance area, completed our intraday XOP and pulling back from daily/weekly overbought. As we've said - short position is not forbidden but it just has greater risk than usual, as market has panic sentiment. That's why we mostly try to be conservative and follow to existed momentum.
Still, on daily chart pullback could take the shape of engulfing pattern that potentially could be used for intraday trading on bearish side. Our major first pattern here is B&B "Buy" that could start from K-support area around 1.1220-1.1250. If we wouldn't have panic and virus story I would suggest deeper retracement due strong overbought condition. But in current circumstances we consider mentioned area as well:
On 4H chart market is trying to close the gap, XOP is hit, but no clear bearish patterns have been formed yet. Thus, on daily chart we wait the B&B level to consider "Buy" trade, while on intraday charts those who wants to, could stick with daily bearish engulfing for scalp short positions, once pattern will be confirmed. Anyway, think twice guys...
So, everything goes with our plan by far. EUR tests weekly K-resistance area, completed our intraday XOP and pulling back from daily/weekly overbought. As we've said - short position is not forbidden but it just has greater risk than usual, as market has panic sentiment. That's why we mostly try to be conservative and follow to existed momentum.
Still, on daily chart pullback could take the shape of engulfing pattern that potentially could be used for intraday trading on bearish side. Our major first pattern here is B&B "Buy" that could start from K-support area around 1.1220-1.1250. If we wouldn't have panic and virus story I would suggest deeper retracement due strong overbought condition. But in current circumstances we consider mentioned area as well:
On 4H chart market is trying to close the gap, XOP is hit, but no clear bearish patterns have been formed yet. Thus, on daily chart we wait the B&B level to consider "Buy" trade, while on intraday charts those who wants to, could stick with daily bearish engulfing for scalp short positions, once pattern will be confirmed. Anyway, think twice guys...