Per Analysis of yesterday I warned about buying at the higher prices. After we have a spike and people bag up, we have some hold the bag. Price nearly stretched the whole range up to 1.098 Daily Zone. Price just couldn't quite make it. Completely Missed this news correction move - was away from computer and totally didn't see it anyways. I did know it was likely we would have selling pressure after news like I have studied in the past (check bias from yesterdays' post). Another News Correction in the books, and another piece of art to learn from. This news correction contained 2 red folders to complete the campaign.
More Analysis : It was very possible to jump on the train for sells after the 7am PST 1Hr News Candle closed bearish underneath our 1h/4hr zone. We consequently came up for a retest at 1.0918 4hr zone . We have the Daily cnadle closing Bearish , nearly completely retracing yesterdays candle. We would like to see the daily candle to at least close above 1.0904 so bulls at least have a reason to hold. 1.089 4hr level appears to be holding steady for the time being. For Bears we would like to see the 4hr chart do a fakeout and respect 1.0918 4hr level. However I can still see weekly target for bulls. We do have clean traffic on 1Hr chart up to 1.0957. NFP holds more weight here for me at least
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retested 1.0918 4hr level. we may drop to the next zone 1.0868 weekly level
@JoeChampion, thanks! and yes 1.1 still looks good for weekly target
ProSignalsFx
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Good thinking, pal!
ShrewdCatfx
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@ProSignalsFx, or we may just consolidate before NFP tomorrow
jvrfxalerts
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Agreed. It may however be just a retest of the lowest close on the 8 h chart. Quite common and one of my preferred methods to identify support/resistance. The daily candles on 3/30-31 and 4/3 had the same price action. I believe it is because neither the US or Eurozone data are making a convincing case for further increases. Or just caution ahead of NFP. There is still a possibility of 1.0855 and 1.0870 being retested as support.
ShrewdCatfx
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@jvrfxalerts, the lowest close 1.089 area or lower? I can see consolidation as well before news.
jvrfxalerts
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@jvrfxalerts, Yes, I meant 1.0890 but as you could see it tested the daily low. My stop survived 1 and a bit pip below that.