Reduce shorts, bearish momentum can drop at weekly resistance!
It was a nice move, but some pull back is possible.
Weekly:
- Ichimoku setup has turned somehow back to neutral, but it still has bullish bias. Most importantly Price reacehd a very important support/resistance level ard 1,42+, where we have future Senkou B (52 weeks average), 100 WMA, and also previous horizontal breakout level. Lower we also have a stronger support/resistance zone at 1,39-,40.
- Heikin Ashi signal is still bearish, but there was no lower low this week. haDelta may cross back up and retest zero line -> possible correction to 1,45-1,46
- Long time to go until December, when ECB will or will not announce more easing. Anyway, pretty much of more rate cut and/or QE has been priced into recent Euro slide.
Daily:
- Ichimoku setup is bearish, with supports at 1,4380 / 1,4550 / 1,4675. Chikou Span below pas Kumo now.
- Heikin Ashi shows some loss of bearish momentum: no lower low in last twoo days, smoothed haDelta has some positive divergence, but it is still located below zero line.
- If 1,42 proves to be a resistance and a corrective wave starts, pull back tgt can be 1,45-1,46 area.
Strategy: Reduce shorts, or sell covered Put options. If correction happens, look for sell signals at daily bearish support at 1,45-1,46 area.
Weekly:
- Ichimoku setup has turned somehow back to neutral, but it still has bullish bias. Most importantly Price reacehd a very important support/resistance level ard 1,42+, where we have future Senkou B (52 weeks average), 100 WMA, and also previous horizontal breakout level. Lower we also have a stronger support/resistance zone at 1,39-,40.
- Heikin Ashi signal is still bearish, but there was no lower low this week. haDelta may cross back up and retest zero line -> possible correction to 1,45-1,46
- Long time to go until December, when ECB will or will not announce more easing. Anyway, pretty much of more rate cut and/or QE has been priced into recent Euro slide.
Daily:
- Ichimoku setup is bearish, with supports at 1,4380 / 1,4550 / 1,4675. Chikou Span below pas Kumo now.
- Heikin Ashi shows some loss of bearish momentum: no lower low in last twoo days, smoothed haDelta has some positive divergence, but it is still located below zero line.
- If 1,42 proves to be a resistance and a corrective wave starts, pull back tgt can be 1,45-1,46 area.
Strategy: Reduce shorts, or sell covered Put options. If correction happens, look for sell signals at daily bearish support at 1,45-1,46 area.