After the drop last week correction did begin for EUR/USD – it formed doji candlesticks in the four hour and daily filter charts and started climbing. Yesterday I didn’t believe that it would climb as much as it did, but apparently I was wrong. Its current target appears to be 1.2710 where there is a pretty strong resistance, so I expect it will stop there, since I do not believe that the bearish trend is completely exhausted yet. Once it reaches 1.2710 I will be on the lookout for any signals that it might begin falling again.
We have FOMC minutes tomorrow, let's see.
ReplyDeleteit could reach that level, but it may resume its downtrend.
ReplyDeleteGreat post. I agree with your view.
ReplyDeleteWe are seeing the largest bullish correction in EURUSD that we have seen in months. That alone would be enough to give us pause but the pair is now above its 10 day moving average in a highly oversold environment. While the daily trend still remains strongly bearish the short-term trend is in danger of becoming bullish with a break above 1.2700.
ReplyDeleteThank you for this post. Very Helpful.
ReplyDelete