On the daily timeframe trend has turned neutral as price is
trading inside the cloud. A Head & Shoulders pattern has been
formed, but it is perhaps not an ideal pattern since it doesn't
appear at the bottom of a longer trend but rather after a sharp
candle to the upside.
Another tendency here, is the sharp bounce off of the lower
Kumo Cloud (Strong rejection) which may warn of more upside, either
with a test of Weekly, R1 (The Weekly PP traded Pre Europe
opening) or the upper Kumo Cloud, around the high of the Head around
1,1020-60. Weekly and Monthly trend is bearish which gives some
more confidence in placingshort entry orders by the Weekly pivots, and
perhaps quickly remove the risk, becuase of the neutral trend
with risk for whipsaws.
On the downside, below the Kumo Cloud, Monthly S1 stands at
1,0814, a natural target in a neutral enviroment.
Bears should wait for a daily close below the Kumo Cloud (Giving a
Break Out sell signal) and a close below the Kijun Sen (White
equilibrium line). Such a close would likely spur more downside and
chances of a test of the multi year low. Trend has turned bearish on the
MACD indicator though, adding more pressure to the downside. Current
overnight bounce up, with a long wick formed, looks like bullish dynamic
pressure. Price needs to breach the 1,08-1,10 range for more clarification.
trading inside the cloud. A Head & Shoulders pattern has been
formed, but it is perhaps not an ideal pattern since it doesn't
appear at the bottom of a longer trend but rather after a sharp
candle to the upside.
Another tendency here, is the sharp bounce off of the lower
Kumo Cloud (Strong rejection) which may warn of more upside, either
with a test of Weekly, R1 (The Weekly PP traded Pre Europe
opening) or the upper Kumo Cloud, around the high of the Head around
1,1020-60. Weekly and Monthly trend is bearish which gives some
more confidence in placingshort entry orders by the Weekly pivots, and
perhaps quickly remove the risk, becuase of the neutral trend
with risk for whipsaws.
On the downside, below the Kumo Cloud, Monthly S1 stands at
1,0814, a natural target in a neutral enviroment.
Bears should wait for a daily close below the Kumo Cloud (Giving a
Break Out sell signal) and a close below the Kijun Sen (White
equilibrium line). Such a close would likely spur more downside and
chances of a test of the multi year low. Trend has turned bearish on the
MACD indicator though, adding more pressure to the downside. Current
overnight bounce up, with a long wick formed, looks like bullish dynamic
pressure. Price needs to breach the 1,08-1,10 range for more clarification.
