Possible early reversal signals on 4 Hrs time frame:
- There are higher lowes since the lowest point was hit.
- DMI lines are getting closer to each other, while decreasing. The again loosing its power
- there is a weak Tenkan/Kijun cross (corss happened below the cloud)
- Chikou Span is close to price candles, may cross above (still below Kumo though)
- Slow cross up again
These signals are not yet firm buy signals for a possible counter trend trade, but they are certanly early warning signals for bears to start closing their shorts.
Note 1: on the and Slow turning up again. These indicators have not yet given buy signals, but are pretty close to that. Price is still below the lower line of the regression trend channel.
And most importantly the is at 58! I have seen such strong and moves in terms of pips in EURUSD , but I have never seen one with such a high . Even the most agressive 1200 pips drop had only a max 50 print. This means that this trend wave was so strong, that it has not had any minor correction since the mid July breakdown at 1,3550. Defenately one correction is due sometimes in coming days.
Corrective tgts are still the same: 1,3050 / or higher 1,3150
Note 2: Look at the agressive swing backs on other EUR crosses. EUR sharply bounced from the lows ag. CAD, AUD, NOK . Looks like these commodity ccys are beaten. I think some late arrivals jumped on the train after ECB announcement, while some others jumped on the USD bull story against these ccys too. So the late EUR bears likely burnt themselves. I think the late USD bulls will do so soon as well. Only strategic trend followers are doing fine.
With a close at/above 1,2950 the daily candle would be a hammer, suggesting more possible corrective move up, back into the regression trend.