Sive Morten
Special Consultant to the FPA
- Messages
- 18,664
Morning guys,
It seems that our suspicions on EUR hidden strength was correct. First we saw it when EUR has broken through 4H K-area and Agreement without respect after strong sell-off. Yesterday market shows no reaction on on bearish reversal pattern and broken through our indicative area of 1.1370 turning short-term trend and sentiment into bullish.
Now market hits strong daily resistance area of K-level and OBght. Right now it is not good moment for long entry and we need some pullback. Breaking the harmonic swing and forming upside reversal swing on daily chart provide good chances on upside continuation.
Following the logic of harmonic swings, if it will be doubled - we're going to next top and 5/8 Fib level around 1.1520.
On 4H chart EUR also has completed very steep AB-CD pattern. Initially we consider two major supports as possible retracement target:
On 1H chart we do not have any reversal patterns yet that could trigger retracement. As momentum is rather strong, EUR could show W&R of recent tops and form butterfly instead of just AB-CD retracement down.
That's being said, scalpers could trade EUR as long as short, but only based on patterns that will be formed on 1H chart and lower time frames.
For daily traders - we do not take any short position as context has changed. For taking long position we need moderate pullback.
It seems that our suspicions on EUR hidden strength was correct. First we saw it when EUR has broken through 4H K-area and Agreement without respect after strong sell-off. Yesterday market shows no reaction on on bearish reversal pattern and broken through our indicative area of 1.1370 turning short-term trend and sentiment into bullish.
Now market hits strong daily resistance area of K-level and OBght. Right now it is not good moment for long entry and we need some pullback. Breaking the harmonic swing and forming upside reversal swing on daily chart provide good chances on upside continuation.
Following the logic of harmonic swings, if it will be doubled - we're going to next top and 5/8 Fib level around 1.1520.
On 4H chart EUR also has completed very steep AB-CD pattern. Initially we consider two major supports as possible retracement target:
On 1H chart we do not have any reversal patterns yet that could trigger retracement. As momentum is rather strong, EUR could show W&R of recent tops and form butterfly instead of just AB-CD retracement down.
That's being said, scalpers could trade EUR as long as short, but only based on patterns that will be formed on 1H chart and lower time frames.
For daily traders - we do not take any short position as context has changed. For taking long position we need moderate pullback.
