ICmarkets

Well done to all those who shorted the Gartley pattern!!!

FX:EURUSD   Euro Fx/U.S. Dollar
193 0 5
For those who read our previous report (see link below) you may recall us mentioning to watch for short entries around the H4 Harmonic bearish Gartley pattern (PRZ – yellow box ). What we also mentioned, nonetheless, was to expect a fakeout beyond the PRZ, since the USDX ( U.S. Dollar index             ) showed a major-league H4 support lurking below current price (which at the time stood at 95.42) at 95.20.

As we can see by looking at both of the above said charts, this played out exactly as expected! The USDX hit 95.20 and by extension forced the EUR to fakeout higher. Well done to anyone who jumped aboard this train before it departed south.

Pushing forward, we see the shared currency has also connected with daily supply at 1.1215-1.1264, and as we have mentioned in past reports, the weekly chart continues to reflect a bearish stance from weekly supply at 1.1533-1.1278. Therefore, with the next downside target on the daily chart not in view until daily demand at 1.1057-1.1108, we feel the H4 demand seen marked with a green circle at 1.1114-1.1125 will be faked (ignored) as price will target the 1.11 number/H4 demand at 1.1057-1.1096.

Our suggestions: For traders already short from the above mentioned H4 Harmonic pattern , we see no reason to look for the exit door yet! We would, however, recommend moving stops to breakeven and taking at least 50% off the table since let’s not forget the mighty NFP is just around the corner.

As far as we can see, other than the short trade (that has already moved in favor), neither a long nor short seems attractive at this time.

http://blog.icmarkets.com/thursday-2nd-june-heavy-volatility-expected-this-afternoon-remain-vigilant-traders/
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