Forex FOREX PRO WEEKLY, October 15-19, 2018

The Euro confirmed the expected scenario, the rally from 1.1432 looks impulsive, and it might have ended at 1.1599 as the first wave of a larger recovery. The new top at 1.1610 seems to be corrective in nature suggesting a correction has already been started and it should end after three waves. The pullback may end above 1.1541 but the usual Fibonacci retracement targets rest at 1.1536 and 1.1496. A second impulsive rally would follow.

A dip below 1.1586 and a move down through the lower boundary of the base channel will signal more downside potential.

View attachment 39914

Greetings guys, a short update again: green circle wave i is in place as expected. The internal labeling has been adjusted to allow this wave completed a leading diagonal at the 1.1610 high.

A leading diagonal in the wave one position is typically followed by a deep retracement. The impulsive nature of the initial decline from 1.1610 suggests circle wave ii was unfolding as a "sharp" Zigzag correction, the steep decline is countable in three waves. As such, there is the possibility wave ii could have bottomed. A five wave rally impulsively through 1.1610 is required to signal wave ii has bottomed at 1.1534 and wave iii is underway. In this case we can use 1.1568 as working support for higher.

On the other hand, the advance from 1.1534 unfolded in three waves up to 1.1606. The entire corrective structure can transform into a flat if the Euro goes lower from the recent top. If 1.1577 breaks impulsvely, we can consider it to be a bearish setup to have more downside correcting to do in a C wave decline, I expect it to end around 1.1530.

EU_181015.gif
 
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Have a great time on vacation. You’re market analyses are a real gem. I watch the vids and read everyday but am usually not logged in to comment. Be assured we greatly appreciate what you do here.
 
Morning guys,

Actually Stag has described everything already... Classic patterns and DiNapoli issues just confirm this idea.

On daily chart we still keep in mind bearish grabber that we've mentioned on weekend, this is our longer-perspective pattern. Currently we're mostly busy with B&B "Sell" LAL setup. It's target stands at 1.15 area.
Although yesterday upside action was slightly higher than we've planned - it has not broken major levels and keep valid as B&B setup as grabber:
eur_d_16_10_18.png


4H chart gives us more hints on particular patterns. Take a look, here we also have got bearish grabber, that suggests drop below recent lows. Overall shape of price clearly suggests appearing of Double Top pattern:
eur_4h_16_10_18.png


Things that we have on daily/4H makes us try to go short as closer to the tops of Double Top as possible.
Now, on 1H chart market is forming "222" Buy pattern. It means that at least 3/8 upside bounce should happen as soon as it will be completed. This will be the chance to go short against the tops. Whether this journey will be successful or not - but risk definitely will be minimal and potential loss is small.
eur_1h_16_10_18.png
 
Greetings guys, a short update again: green circle wave i is in place as expected. The internal labeling has been adjusted to allow this wave completed a leading diagonal at the 1.1610 high.

A leading diagonal in the wave one position is typically followed by a deep retracement. The impulsive nature of the initial decline from 1.1610 suggests circle wave ii was unfolding as a "sharp" Zigzag correction, the steep decline is countable in three waves. As such, there is the possibility wave ii could have bottomed. A five wave rally impulsively through 1.1610 is required to signal wave ii has bottomed at 1.1534 and wave iii is underway. In this case we can use 1.1568 as working support for higher.

On the other hand, the advance from 1.1534 unfolded in three waves up to 1.1606. The entire corrective structure can transform into a flat if the Euro goes lower from the recent top. If 1.1577 breaks impulsvely, we can consider it to be a bearish setup to have more downside correcting to do in a C wave decline, I expect it to end around 1.1530.

View attachment 39945

Short update again: the Euro is tricky and prices registered a new high but the structure unfolds in a corrective manner, possibly an expanded flat (a 3-3-5 structure). If the advance completed a pink wave (b), a break of 1.1566 should follow and the wave (c) decline should exceed 1.1534. Only a rally above 1.1621 would negate this temporarily bearish view.

EU_181016_m15.gif
 
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Short update again: the Euro is tricky and prices registered a new high but the structure unfolds in a corrective manner, possibly an expanded flat (a 3-3-5 structure). If the advance completed a pink wave (b), a break of 1.1566 should follow and the wave (c) decline should exceed 1.1534. Only a rally above 1.1621 would negate this temporarily bearish view.

So far so good, the target zone is slightly adjusted a bit higher. At this stage a rally above 1.1571 would signal wave (c) bottomed and a new rally is underway.

EU_181017.gif
 
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