- Trend. Based on the impulse moves I find the trend still UP, although suffering from a deep and steep correction.
- Fundamentals: both EUR and USD are neutral in terms of , but EUR is stronger than USD.
- Support. The falling price may found support on the (1.0966), which happens to be at the prior highs and coincides with the down sloping . There is also another support at the highs of the bottoming candles, as well as at the rising blue parallel.
- Resistance. Price may find the first resistance at the prior major lows, just a few pips shy of 1.1, but I think we'll see more to the upside than that. I find the next resistance to be at 1.1245 (prior minor high) and the next one at low of the topping candle, ie. around 1.1274.
- Trading opportunites: enter long at one of the support levels, with a stop-loss order below the corresponding prior low, looking to exit at some of the resistance levels with R:R of at least 1:1.
Here's the summary of how I see the current situation in financial markets (as of Tue. 23.02.2016, 11:00 CET):
The strongest currency: JPY (currently strengthening, soon expected to be overbought).
The weakest currency: GBP (recently oversold, now strenthening).
The leading markets:
- XAUGBP - trending up;
- GBPJPY - trending down;
- Natural Gas - trending down;
- GBPCAD - trending down (be cautious trading it - may soon be marking a bottom in a very-long-term up trend)
- GBPAUD - trending down (be cautious trading it - may soon be marking a bottom in a very-long-term up trend)
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