Forex FOREX PRO WEEKLY, October 22-26, 2018

[Deltoid88]

On short term look for sell opportunities. This harmonic pattern can provide better short entry.

 

[Stag]

The Euro made a new high above 1.1534 as expected followed by a reversal. The decline off 1.1550 completed three waves at 1.1439 but there is no evidence a bottom is in. We have to see prices above 1.1476 to confirm it has. Note that any new low would negate the bullish scenario.

Needless to say the bullish scenario is over, our ultimate boundary was broken and the decline to recent low at 1.1378 is in three waves which suggests the drop is not complete.

The trend is possibly down until key resistance at 1.1489 is violated. Even a major correction above 1.1477 would only delay the resumption of the decline (in this particular case the decline could be an ending diagonal), so it appears the Euro will keep on weakening towards the next target level around 1.134 - 1.132 area, regardless of which alternate scenario is unfolding.

Using 1.1439 as near-term key resistance the focus is on lower.

 

[Sive Morten]

Good morning,

As EUR was not able to show fast return up from our 1.14 target - it confirms real breakout and downside continuation. Since all major Fib levels have been broken already, most important level for us here is daily Oversold. Today it stands around 1.13. It means that road to 1.13 is free.

Daily next target is OP at 1.1237, but it is too extended for this week probably. Hence, we will focus on something closer :

On 4H chart we have multiple patterns of different kind. Here we're interested with two destination points. First is 1.618 of minor butterfly and AB-CD target around 1.1360. But most probable target, if ECB will add fuel is 1.618 one of big butterfly. It stands around 1.1320 and, what is important - above daily Oversold. Market could hit it till the end of the week, especially if GDP data tomorrow will be flat or positive.

We do not expect strong pullback today. Most probable area that could be hit equals to harmonic retracement swing and agrees with XOP retracement target and K-resistance of 1.1430-1.1440 area. Here we also should get "222" Sell pattern.

 

[Deltoid88]

On short term look for sell opportunities. This harmonic pattern can provide better short entry.

View attachment 40086

Short term entry worked perfectly, TP zone very near 1.1315-1.1360. That could be also reversal zone for EURO for more meaningful bounce to upside, or just minor bounce and drop to 1.11-1.12 first and then true bounce to over 1.18 area.

 

[Deltoid88]

GBP looks at similar position like EUR, just here bearish momentum is a bit stronger, but that could change very soon. Almost all bearish patterns have already been completed and GBP may start significant bounce very soon. I am looking for long entries in rectangle zone with wider stops.

 

[Sive Morten]

Morning guys,

Yesterday EUR has shown another small dive to 1.1360 and completed our nearest target. Today all eyes on US GDP release. Daily chart still looks bearish, but on intraday picture we have some patterns telling that higher retracement is possible.

In current circumstances we definitely do not recommend to go long. If even stronger upside action will happen - initially we will treat it as retracement and better chance for short entry. On 4H chart our minor butterfly is totally completed and AB=CD as well. Next downside target is 1.1320:

Here is why I wouldn't jump in right here. We have wedge type of consolidation. It tells that downside power is exhausting. Inside the wedge we have 3 Drive Buy pattern and its minimum target stands above the 1.1430 area. Since everything depends on GDP, I would prefer to wait a bit and see. If market will drop further - this will open wide road down on next week, and this will not be the tragedy that we skip entry today.
Conversely, if still upside action will happen - this gives us better entry levels.

 

[Stag]

Morning guys,

Yesterday EUR has shown another small dive to 1.1360 and completed our nearest target. Today all eyes on US GDP release. Daily chart still looks bearish, but on intraday picture we have some patterns telling that higher retracement is possible.

In current circumstances we definitely do not recommend to go long. If even stronger upside action will happen - initially we will treat it as retracement and better chance for short entry...

This time totally agree with Sive, the only hint I could add is that the upper boundary of the wedge can be slightly higher, prices can go up to 1.146 - 1.148 if we see an unfolding ending diagonal, followed by a reversal towards new lows.

Note that as long as prices are trading below 1.1553 the alternate bearish scenarios remain intact acording to the Wave Principle.

 

[Deltoid88]

Short term entry worked perfectly, TP zone very near 1.1315-1.1360. That could be also reversal zone for EURO for more meaningful bounce to upside, or just minor bounce and drop to 1.11-1.12 first and then true bounce to over 1.18 area.

View attachment 40103

View attachment 40104

EUR is ready for significant bounce. I am going for big profits. This is my primary wave count.