After bulls were devastated by ECB, FOMC, and NFP, everybody is like now what??!! Well, market is currently in a strong massive downtrend that broke the strong support levels at 1.11136 and 1.08717. But I think we will see an end to this pretty soon around 1.06000 and we will see a bounce back at least to the previous structure levels. Here are my reasons: 1-Completion of our advanced
patterns 2- Structure level of 1.05602 3- Support of the previously broken daily trend line
4- We will most likely see an extremely OS RSI
by that time 5- 1.06000 is a psychological number.
As I previously mentioned, we are in a current massive downtrend. For being on the safe side, I recommend to wait for a doji
candle or a double bottom
divergent at that level before getting involved into any trade.
PLEASE note that all these are technical analysis
, and ECB and Fed's decision for increasing the interest rate in December could completely change everything. Good Luck!