Positive divergences in oversold market. Watch 1,0730!
Daily:
- Ichimoku bearish, but Price still too far below Kijun -> oversold
- Heikin Ashi turns neutral. Positive divergence building in smoothed haDelta! Ticks up towards zero line.
- EWO has reached extreme low. The whole move from 1,1350 to 1,0650 can be considered as one big wave only. Should correct.
4H
- Very nice and clear bearish trendline which stays together with Kijun Sen, Future Senkou B and horizontal line. Ichimoku setup is still bearish, but future Kumo startes to shade spot price a bit.
- Heikin Ashi is neutral now, but still has bullish bias until haDelta is above zero. We have a positive divergence in smoothed haDelta here as well!
- EWO has built a huge positive divergence. Still below zero.
So the market still looks bearish, but we have a lot of positive divergences on both time frames, while I also think market is oversold. I did not mark this post "LONG" to call for an immediate buy in EURUSD. I did it, because I think market may start a correction soon, and I'd like point out the level of possible reversal:
1,0730-50 -> Daily Tenkan and soon the SAR + 4 Hours Horizontal, Kijun, Trendline and future Senkou B (soon 100 WMA too)
- Ichimoku bearish, but Price still too far below Kijun -> oversold
- Heikin Ashi turns neutral. Positive divergence building in smoothed haDelta! Ticks up towards zero line.
- EWO has reached extreme low. The whole move from 1,1350 to 1,0650 can be considered as one big wave only. Should correct.
4H
- Very nice and clear bearish trendline which stays together with Kijun Sen, Future Senkou B and horizontal line. Ichimoku setup is still bearish, but future Kumo startes to shade spot price a bit.
- Heikin Ashi is neutral now, but still has bullish bias until haDelta is above zero. We have a positive divergence in smoothed haDelta here as well!
- EWO has built a huge positive divergence. Still below zero.
So the market still looks bearish, but we have a lot of positive divergences on both time frames, while I also think market is oversold. I did not mark this post "LONG" to call for an immediate buy in EURUSD. I did it, because I think market may start a correction soon, and I'd like point out the level of possible reversal:
1,0730-50 -> Daily Tenkan and soon the SAR + 4 Hours Horizontal, Kijun, Trendline and future Senkou B (soon 100 WMA too)
