The algorithm has found an interesting pattern in EUR/USD.
Red in chart
After the break of the previous channel the price has corrected a 61,8%, the fibo level but this is also the previous zone of supports and resistances. If that's not enough, it's also the last level with accumulated volume, if we move to 1,08 the volume disappears which would be the perfect storm for a rally until the zone of 1,12 where we should expect offer again.
Green in chart
To see the rally to 1,12, a fast break of 1,08 must occur. So having enyrty postitions over 1,08 could be an interesting strategy with a good risk reward ratio.
Blue in chart
The model predicted this area as a key level to stop rallying due to multiple reasons:
1. Prior supports and resistances.
2. High volume accumulation, meaning that offer is probably waiting here.
3. 61,8% fibo level.
4. High band of the new uptrend channel.
After this lateral market started dec 15, the break could firstly occur in the downside, breaking the support of 1,06. If this occurs a small double top pattern would be confirmed and we should see the price to 1,04 soon. This level would be key to see if we are still in a lateral correction of this uptrend.
Red in chart
After the break of the previous channel the price has corrected a 61,8%, the fibo level but this is also the previous zone of supports and resistances. If that's not enough, it's also the last level with accumulated volume, if we move to 1,08 the volume disappears which would be the perfect storm for a rally until the zone of 1,12 where we should expect offer again.
Green in chart
To see the rally to 1,12, a fast break of 1,08 must occur. So having enyrty postitions over 1,08 could be an interesting strategy with a good risk reward ratio.
Blue in chart
The model predicted this area as a key level to stop rallying due to multiple reasons:
1. Prior supports and resistances.
2. High volume accumulation, meaning that offer is probably waiting here.
3. 61,8% fibo level.
4. High band of the new uptrend channel.
After this lateral market started dec 15, the break could firstly occur in the downside, breaking the support of 1,06. If this occurs a small double top pattern would be confirmed and we should see the price to 1,04 soon. This level would be key to see if we are still in a lateral correction of this uptrend.
Comment:
The 1,04 has been touched by the price and then we have seen a fast movement upside. Keep posted for new ideas.