In yesterday's forecast, I expected EU to rollover to again re-test Tuesday's (2nd Feb) low at 1.2010 level, which was exactly what the market performed. A breakdown my overall thesis on EU. Since December I've been discussing about potential ascending channel forming until 7th Jan. Ascending channel simply means a lack of momentum in buyers as price kept getting refused everytime it creates a new high creating bounces between the upper & bottom band, disagreement of the current price level. On the 7th Jan, I expected the ascending channel to be broken followed by a re-test with a massive selloff. 22th Jan was when I talked about the flag (exhaustion pattern), rejected the 1.2175 level multiple times which gave me confidence that the market will have further continuation to the downside. On the 29th Jan, I expected EU to have a second test of the bottom band of the flag pattern with bearish continuation towards 1.2010 key support zone. I will link all of these forecast in the comment section below.
In today's trading session, I will be favoring short-term selling opportunities as all the short-term & long-term moving averages (18, 50 & 200ema) is sloping downwards. But one thing to consider is that RSI is definitely getting near to the oversold region, avoid looking for a home run as the bearish movement has gone slightly far. I will looking for a pullback for further bearish continuation towards 1.2010 & 1.1915 support zones. However, be aware that 1.2010 is a key support zone, if price again rejects from 1.2010 that could send EU back towards 1.2050 & 1.2150 resistance zones. Do not forget the overall trend on the higher timeframe remains bullish, I'm only trying to capitalize on the short-term bearish sentiment in the market.
Flexibility is the key. Trade safe.
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In today's trading session, I will be favoring short-term selling opportunities as all the short-term & long-term moving averages (18, 50 & 200ema) is sloping downwards. But one thing to consider is that RSI is definitely getting near to the oversold region, avoid looking for a home run as the bearish movement has gone slightly far. I will looking for a pullback for further bearish continuation towards 1.2010 & 1.1915 support zones. However, be aware that 1.2010 is a key support zone, if price again rejects from 1.2010 that could send EU back towards 1.2050 & 1.2150 resistance zones. Do not forget the overall trend on the higher timeframe remains bullish, I'm only trying to capitalize on the short-term bearish sentiment in the market.
Flexibility is the key. Trade safe.
Do follow my profile for daily fx forecast & educational content.
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