EUR/USD model hours

[Paul Koszarny]

Here's the outcome of fractal modeling.

Expect an extreme daily reading on January 9 (high) or January 10 (low). Unfortunately the model cannot determine at this stage whether this week we will get a new high or a new low. It would be important in the case of taking a trade right now but fractal modeling suggests standby till the daily extreme comes and bet against the prevailing trend like I suggested last Thursday. Strong resistance 1.0473-1.0455 slanting down making it easier to penetrate higher near the end of the week. Strong support 1.0348-1.0371 slanting up.

If a new high 1.0591 posted near January 9-10, try aggresively short. As I mentioned last week ideally I would wish EUR/USD to fall to 1.0150 on January 10.

Last week's close is pretty strong but still below major resistance levels and stop losses of Thursday short positions. So a break higher will trigger off a massive buying.

The first model hour is 6:00 (CET). On hourlies one can try any direction provided the place of entry is a clearly defined pattern. An hourly high/low tempts to go against the current.