Forex FOREX PRO WEEKLY, November 04 - 08, 2019

[Sive Morten]

The first picture is what I was looking at yesterday night, but could we consider the daily chart as the formation of a double top pattern? Which if completed could take us below the 0,618 FIB and for now oversold line stands in his way, IMO this is a less probable scenario but is it still worth considering?

Well, probably yes, but Double Top sugests 2x ratio target - it will be even below XOP.
For Double Top I prefer to see W&R of the first top. As we do not have it, I treat it just as AB-CD pattern. But this is not big difference to treat it as Double Top as well. This is just the question of the traget mostly.

 

[Sive Morten]

Morning folks,

Hopefully EUR behaves rather predictable in recent few days, so intraday setups work nice by far. Yesterday again, after minor pullback another drop has happened. Currently on daily chart we do not have any signs that market is turning up and downside action is over.

On 4H chart our "non-reliable" divergence has triggered minor pullback but it stands as inside swing and doesn't break the LH-LL tendency, as sell-off has followed. Since today is Friday, it makes no sense to set some far standing target. I suppose that XOP is suitable enough for today's session. At least EUR has chances to reach it:

On 1H chart EUR keeps harmonic retracement swing pretty nice, thus, following this logic - it suggests that somewhere around 1.1070 K-area upside retracement should be over and EUR could re-establish downside action. Larger divergence exists here as well, but I have the same view on it as on smaller divergence that we've discussed yesterday. Don't forget to manage your stops if you keep short positions.