Hi sive,Good morning,
although we've expected a bit deeper retracement up - this has not happened and market collapsed again. But this tells us that weekly B&B has not started yet. Hence, the next area to watch for - as a potential support, where it could start - 1.40-1.4140 weekly Confluence support. Here is also daily oversold and weekly pivot support 1.
On 4-hour chart we see that market has reached 100% Fib target and 3-drive Buy, that we've discussed in the beginning of the week. Also here is a MACD Divergence. But really this is not a big deal currently.
The point is that we want to trade weekly B&B "Buy" pattern. And as you understand, if market intends to turn to solid retracement on weekly - it should show some clear pattern on daily and some reversal pattern on 4-hour chart (may be reverse H&S or something).
Possibly in could be, say, bullish engulfing on daily with W&R of previous lows, and classical reversal pattern on intraday charts.
Until that will happen - I will not enter long, besides, there are no clear buy singals as on daily as on 4-hour yet.
Second - our 3 drive could transform to larger one - if 1&2 drives will be first drive and third will become second - then market could show additional move down to complete it.
If you're scalp trader, possibly you can try to sell from some retracement from recent swing down with the target around weekly pivot support 1. But, this is just an assumption, based on daily trend and the fact that market is not at oversold. The question still remains how it will work...
Market already hit todays low at 1.4123.Any clue to enter long???