The megaphone pattern is still in play. On Friday we broke below 100.73 : we are back into the megaphone so there is still a good chance that this was a failed breakout. During the last 2 weeks we printed a H&S pattern and we are breaking down the pattern. The first level we could tag very soon - if the breakdown is completed - 99.4 . There is the 200 SMA on the 4hrs chart and that is the target price counted from the H&S pattern.
Notice the divergencies at all the indicators: MACD, RSI, TSI
Today's italian voting will be very important in setting the direction.
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ECB is frightened. Intervening with full power: buying the euro. They always talk before acting...
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We are printing a terrible key reversal daily candle.
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Draghi should have seen this scenario weeks ago, he was still weakening the euro. At least now we can see what is their pain treshold: They don't want the parity.
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It seems we tested back the breakdown. It's a possible entry point again.
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leonarddavidson60
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Yes,agree completely..dollar is on way down ..and 99.4 level can be broken pretty soon..and no rate hike would change the downside direction,because the latest hysteria has already priced the hike in....
So short position is now long? Is the reversal confirmed?
JohanCastellanos
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@chartwatchers what do you think of a possible rate hike in Dec? Wouldn't that create another rally on the dollar?
Nightstar
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@JohanCastellanos It's already priced in at this point and what you'll likely see on the day is a knee-jerk reaction.. don't let that dissuade you from the big picture!