|
EUR/USD fractal outlook
EUR/USD fractal outlook
Last week’s roller-coaster volatility must have caused dizziness on various positions but finally left the market extremely oversold resting on hourly supports. It dipped first on Monday to 1.1650 and on Wednesday to a better low 1.1632. Bounces off those lows barely ignited any buying and then came the crouching buyers on Thursday lifting the market to 1.1886. In anticipation of a follow through it slightly retraced, returned to 1.1880 just moments after to plummet as low as to 1.1690. Hourly charts show two classical support lines. That’ s the place where Friday ended its trading. The two candles indicated by the model as key reversals are particularly well visible. They highlight a bearish hourly pattern which I call a gate. Week’s close is very negative. In the course of two sessions it is possible for EUR/USD to dip again to the region of 1.1600. H8 charts show a long term support crossing at 1.1600 now. In addition to it there is a bullish gap which is more or less on the same level as the aforesaid support line. We need that gap to be closed in order to trigger selling towards 1.1463. The nearest model hour is 6:00CET.
|
Licensed Brokers
Linear Mode
