Hello Traders,
Here is the Top-Down Analysis of EURUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Price was respecting downward resistance trend-line however it broke trend-line to the upside, it will now act as support. Price has returned back to test monthly resistance again. We can expect a bearish correction.
W > After breaking resistance trend-line to the upside price decelerated and created a consolidation. Price dropped to test trend-line as support and has tested the level thrice as support. We can see bearish divergence and can expect correction to the downside.
D > While deceleration price respected an upward trend-line as support and after its break to the downside price respected the same as resistance before breaking it to the upside again last week. Placing Fib on last monthly bullish impulse (between monthly low to high) we can expect first correction till 0.382 level that also coincides with daily demand zone.
As per COT EUR saw addition of Long and closure of Short, increasing net positions. EXY has strengthened in past 2 weeks.
Institutions, since August, have been reducing their portfolio of Long and increasing Short positions, with about 60K Long positions closed and 18K short positions opened so far.
4H > After testing monthly resistance price dropped for correction, making a new LH, however price is moving to the upside again. We can see bearish divergence and expect a drop. We will get first sign of bearish reversal if price fails to make a new HH and break of last LH with creation of LL will confirm bearish trend. Pull back after creation of LL will provide a good Short opportunity.
Pair Correlation > EURUSD has positive correlation with GBPUSD and negative correlation with USDCAD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Price was respecting downward resistance trend-line however it broke trend-line to the upside, it will now act as support. Price has returned back to test monthly resistance again. We can expect a bearish correction.
W > After breaking resistance trend-line to the upside price decelerated and created a consolidation. Price dropped to test trend-line as support and has tested the level thrice as support. We can see bearish divergence and can expect correction to the downside.
D > While deceleration price respected an upward trend-line as support and after its break to the downside price respected the same as resistance before breaking it to the upside again last week. Placing Fib on last monthly bullish impulse (between monthly low to high) we can expect first correction till 0.382 level that also coincides with daily demand zone.
As per COT EUR saw addition of Long and closure of Short, increasing net positions. EXY has strengthened in past 2 weeks.
Institutions, since August, have been reducing their portfolio of Long and increasing Short positions, with about 60K Long positions closed and 18K short positions opened so far.
4H > After testing monthly resistance price dropped for correction, making a new LH, however price is moving to the upside again. We can see bearish divergence and expect a drop. We will get first sign of bearish reversal if price fails to make a new HH and break of last LH with creation of LL will confirm bearish trend. Pull back after creation of LL will provide a good Short opportunity.
Pair Correlation > EURUSD has positive correlation with GBPUSD and negative correlation with USDCAD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX