So, it seems that not occasionally we have worried yesterday. We couldn't know that, but JP comments has pushed markets higher as everybody just hangs for dovish moments but ignores all the others. We suggest that bearish sentiment has not disappeared and current action is short-term. The Monthly B&B is ripening.
Most probable destination point here is 1.0580-1.06. Here we have XOP target and 1.27 extension of downside swing that accurately envelop Monthly/Weekly K-resistance area of 1.0578-1.0595. We suggest that changes that B&B will start in December are high enough:
Here on 4H chart we said yesterday that price action looks too slow, gradual and tight, which is not typical for the bearish market. Immediately upside breakout happened. Hopefully, JP speech effect and positive NFP numbers will be enough to support this upside action, and extend it to the target:
So, we do not consider any shorts by far. Bulls could think about short term trade. On 1H chart market has broken the wedge and all Fib resistance levels, so, we can't rely any more on bearish Evening pattern on 4H chart.
At the same time, the vital point for the bulls is low of recent thrust @1.0290. Market has to stay above it, and preferably above 5/8 support area of 1.0354. Now price stands at 1st 3/8 Fib level 1.0395, so you could think about position taking, if you want:
THe major weakness of this rally guys, is a background. It is based not on internal EUR strength but on some external injection, the boost from J. Powell...