After finally breaking the last high from september it seems to me that the price has reached a point where it losses momenutm. It broke through resistance and went up to the 127.4% Fibo-Level just to encounter new resistance. Will we get a new trading range between 0.81134 and 0.81661 - a rather narrow range - or will we break through this levels with the next movement ? Well, basically this scenario calls for a OCO-order on either side of that range, were it not that the trendline is in the way for the short side at the moment. It is only reasonable to expect a 3rd touch of this line and to expect that it will hold on such an important level. What makes me a bit suspicous about this trend is that the price was not able to reach the 'dotted' upper channel line. This is usually a sign of weakness. Anyway, it is still too early to tell. The obvious trend formation could instead turn into this rising wedge - which if prices follow the wedge - might provide us with a good opportunity for a short position once the 161.8% Fibo-Level has been reached. I stay neutral until I see a sign for a direction as mentioned above. I am willing to go short if I see a trendline break on a daily close and I will have a buystop order just above the last high at 0.81661
Comments
artaj68
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Thank you, by drawing lines on my chart I was thinking exactly in the same way. At the moment I will wait as well.
Next time I will write more about my thoughts (will try to learn explaining myself in better way) and because market did not reach dotted upper line on your chart, that is way I am more bearish than bullish. H&S on daily chart is possible, but not yet.
artaj68
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tradersvision
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Thank for very much. Your daily chart helps me a lot as I conclude...if your idea turns into reality then a Head-and-Shoulder formation - with the right shoulder lower than the left one - will or has to materialize on your chart...very interesting...I also see a 5 wave pattern counted from the low in august, with the 5th wave in place...if my count is correct then we should get a ABC- correction...I like that exchange...hope you don't my comment...cheers
artaj68
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I love your comments. Helps me to learn to explain myself in better way. Please comment whenever you have something to say. Always appreciated.
artaj68
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As always your posts are very interesting. And I just would like to show my Daily EURGBP chart : It does not answer your question "Where do we go from here?", but I am looking to the south.
Thanks for posting.
Next time I will write more about my thoughts (will try to learn explaining myself in better way) and because market did not reach dotted upper line on your chart, that is way I am more bearish than bullish. H&S on daily chart is possible, but not yet.