EUR/USD BEWARE of bearish extensions, Buy only upon confirmation
- We can see how the price in most of yesterday's NY time remained downward, eliminating and creating a new Low in the same Bearish trend, and after creating said Low a new Bullish phase began that took the price to change the trend, thus managing to eliminate or manipulate the last decreasing High before the bearish impulse that we saw yesterday.
- If we look at the price at the time it fell yesterday and left us with the new Low, it was only following the Bearish trend it was in, which is only part of a medium-term trend reversal, which said reversal It fell 78% since the last medium-term trend impulse that we saw last week.
- Therefore we must not forget that although the General Long-term trend is Bearish, the trend that matters most to us is the medium and short term, therefore knowing that the medium term is Bullish and the short term was or is Even bearish, the price would be more likely to begin or continue its previous bullish phase from where it is.
- After the price manages to mitigate the zone of origin as we already mentioned at the time of retracing 78% since the last impulse to the Rise, it reacted strongly to the Rise, thus causing a higher CbdE in Temporality such as 1H and even 4H, But we must mention that said CbdE both for the two mentioned temporalities, only closed with a cupero above the body of the candles that the price left at the time of leaving said High decreasing, but it did not close with body above the wicks of said High decreasing.
- Therefore, this scenario can be interpreted in 2 ways,
1- It is just that this has been a liquidity grab and not a valid bullish CbdE.
2- That it was a CbdE valid on the Upside, and that now we are only seeing a discount in the price to continue with said Bullish trend, which may end up leaving or breaking the key level of the intermediate zone of the General Long-term bearish impulse.
IMPORTANT:
- From the Bullish impulse that occurred after the London close in the second part of NY yesterday, we can see that the price currently resides in the intermediate zone from said impulse, so we must be on the lookout since there has been can continue with its alcsite phase.
- At the same time I must mention that if the price eliminates the intermediate zone where it is located, Specifically if it eliminates the key level of 1.08948 which is a little below the London Low, then clearly today we will continue to see bearish extensions.
- Such downward extensions can lead to the elimination of the Asian Low and even continue falling until the Ordec Block zone in breakdown located a little further down is eliminated, which if it is also eliminated then we will see the possible extension to lower levels such as It would be to eliminate yesterday's NY Low, thus entering more fully into the area of origin from the Bullish impulse we had last week.
- It is worth mentioning that we have 2 bullish trend lines, one of which crosses above or intermediate the NY Low already mentioned, and the second passes below or intermediate of the same Low, so if the price decides to continue falling and eliminate or manipulate the Low already mentioned, then both the origin zone and the medium-term trend lines will be highly likely to be waiting for a trend change once the price is in that area.
EYE:
Possible Bullish Scenarios:
- That the price from where it is currently is creates an Rising CbdE in a minimum period of 15M OR 1H and then it gives us the necessary confirmation that we need to be looking for an opportunity to enter the market in purchases today.
- That the price decides to eliminate the London Low of the day, and that it then eliminates or manipulates the Asian Low, but that it does not leave or breaks again the ordec block zone in a downward break, so we can be waiting for the same scenario mentioned , CbdE in a time frame of 15M O 1H and then look for that same scenario in smaller time frames such as those of 3M O 1M as confirmation to enter the market today.
- That the price decides to continue with its falls or downward extensions thus eliminating both the London and Asian Lows as well as the ordec block zone in breakdown already mentioned, but that it begins to consolidate between the NY Low of yesterday and Demand's medium-term origin zone.
Possible Bearish Scenarios:
- That the price from where it is located recedes to both the intermediate and origin zones created by the CbdE or change in structure that we recently saw downwards, and that at the moment of reaching any of said zones it repeats the same scenario of a bearish CbdE, which would give us the opportunity to enter the market today in sales, looking for possible extensions to lower levels for today.
- That the price does not fall back to the mentioned areas and that on the contrary it continues to fall, thus eliminating both the London Low and the Asian Low and also the ordec block zone in breakdown, which later if the aforementioned scenario happens without having discounts the price, then we will use said breakout zone to look for a confirmation that will allow us to enter said bearish extension for today.
- That the price continues to fall but in this case it only eliminates the London Low and the Asian Low and after mitigating the break zone, it recedes, thus having a valid discount to subsequently continue its downward trend, then eliminating the break zone, which would make the price reach a minimum of yesterday's NY Low area and even the medium-term origin area.
Everything Bullish would begin to have a first effect if the key level of 1.09062 is eliminated. Then continue to closely observe the price action, if it gives us confirmation to enter a buy.
And Everything Bearish would begin to have a first meaning if the Low of London or better yet that of Asia is eliminated, Or in another scenario that only wants to reach the aforementioned Supply zones recently created to support itself and subsequently continue falling.
- Currently, while I was finishing writing the analysis of the day, the price has just eliminated the London Low, which is why the bearish scenarios for today are being validated with greater probability, but we still cannot rule out even a bullish scenario. for today.
- If we look at the price at the time it fell yesterday and left us with the new Low, it was only following the Bearish trend it was in, which is only part of a medium-term trend reversal, which said reversal It fell 78% since the last medium-term trend impulse that we saw last week.
- Therefore we must not forget that although the General Long-term trend is Bearish, the trend that matters most to us is the medium and short term, therefore knowing that the medium term is Bullish and the short term was or is Even bearish, the price would be more likely to begin or continue its previous bullish phase from where it is.
- After the price manages to mitigate the zone of origin as we already mentioned at the time of retracing 78% since the last impulse to the Rise, it reacted strongly to the Rise, thus causing a higher CbdE in Temporality such as 1H and even 4H, But we must mention that said CbdE both for the two mentioned temporalities, only closed with a cupero above the body of the candles that the price left at the time of leaving said High decreasing, but it did not close with body above the wicks of said High decreasing.
- Therefore, this scenario can be interpreted in 2 ways,
1- It is just that this has been a liquidity grab and not a valid bullish CbdE.
2- That it was a CbdE valid on the Upside, and that now we are only seeing a discount in the price to continue with said Bullish trend, which may end up leaving or breaking the key level of the intermediate zone of the General Long-term bearish impulse.
IMPORTANT:
- From the Bullish impulse that occurred after the London close in the second part of NY yesterday, we can see that the price currently resides in the intermediate zone from said impulse, so we must be on the lookout since there has been can continue with its alcsite phase.
- At the same time I must mention that if the price eliminates the intermediate zone where it is located, Specifically if it eliminates the key level of 1.08948 which is a little below the London Low, then clearly today we will continue to see bearish extensions.
- Such downward extensions can lead to the elimination of the Asian Low and even continue falling until the Ordec Block zone in breakdown located a little further down is eliminated, which if it is also eliminated then we will see the possible extension to lower levels such as It would be to eliminate yesterday's NY Low, thus entering more fully into the area of origin from the Bullish impulse we had last week.
- It is worth mentioning that we have 2 bullish trend lines, one of which crosses above or intermediate the NY Low already mentioned, and the second passes below or intermediate of the same Low, so if the price decides to continue falling and eliminate or manipulate the Low already mentioned, then both the origin zone and the medium-term trend lines will be highly likely to be waiting for a trend change once the price is in that area.
EYE:
Possible Bullish Scenarios:
- That the price from where it is currently is creates an Rising CbdE in a minimum period of 15M OR 1H and then it gives us the necessary confirmation that we need to be looking for an opportunity to enter the market in purchases today.
- That the price decides to eliminate the London Low of the day, and that it then eliminates or manipulates the Asian Low, but that it does not leave or breaks again the ordec block zone in a downward break, so we can be waiting for the same scenario mentioned , CbdE in a time frame of 15M O 1H and then look for that same scenario in smaller time frames such as those of 3M O 1M as confirmation to enter the market today.
- That the price decides to continue with its falls or downward extensions thus eliminating both the London and Asian Lows as well as the ordec block zone in breakdown already mentioned, but that it begins to consolidate between the NY Low of yesterday and Demand's medium-term origin zone.
Possible Bearish Scenarios:
- That the price from where it is located recedes to both the intermediate and origin zones created by the CbdE or change in structure that we recently saw downwards, and that at the moment of reaching any of said zones it repeats the same scenario of a bearish CbdE, which would give us the opportunity to enter the market today in sales, looking for possible extensions to lower levels for today.
- That the price does not fall back to the mentioned areas and that on the contrary it continues to fall, thus eliminating both the London Low and the Asian Low and also the ordec block zone in breakdown, which later if the aforementioned scenario happens without having discounts the price, then we will use said breakout zone to look for a confirmation that will allow us to enter said bearish extension for today.
- That the price continues to fall but in this case it only eliminates the London Low and the Asian Low and after mitigating the break zone, it recedes, thus having a valid discount to subsequently continue its downward trend, then eliminating the break zone, which would make the price reach a minimum of yesterday's NY Low area and even the medium-term origin area.
Everything Bullish would begin to have a first effect if the key level of 1.09062 is eliminated. Then continue to closely observe the price action, if it gives us confirmation to enter a buy.
And Everything Bearish would begin to have a first meaning if the Low of London or better yet that of Asia is eliminated, Or in another scenario that only wants to reach the aforementioned Supply zones recently created to support itself and subsequently continue falling.
- Currently, while I was finishing writing the analysis of the day, the price has just eliminated the London Low, which is why the bearish scenarios for today are being validated with greater probability, but we still cannot rule out even a bullish scenario. for today.
Comment:
I forgot to mention that in the medium term the price has been creating an inverted Head Shoulder Man, so if the level of the neck line located at 1.09236 to the upside is eliminated, we would then have a pending bullish objective between the levels of the 1.09800 and the 1.09896