Price broke out of blue trendline and retested confirming breakout.
Reached .886% retracement level (key level in this type of retracement) of previous down move.
Looking for another move down to hit monthly support, which would appear as a double bottom on the weekly timeframe.
This recent run up can be considered the first wave of a new series. So the down move to 1.04214 (monthly support) would be considered as wave 2. With the strong bear market, people will be shorting the rallies, which would justify such a deep retracement. However, the monthly support should hold as that level acted as support for a range years ago.
Reached .886% retracement level (key level in this type of retracement) of previous down move.
Looking for another move down to hit monthly support, which would appear as a double bottom on the weekly timeframe.
This recent run up can be considered the first wave of a new series. So the down move to 1.04214 (monthly support) would be considered as wave 2. With the strong bear market, people will be shorting the rallies, which would justify such a deep retracement. However, the monthly support should hold as that level acted as support for a range years ago.
Comment:
Down move should complete early to mid next week.
Comment:
Opportunity to get in short again would be at 1.06018.
Comment:
NFP brought price up to convincingly hit the 88.6% retracement level, which led to a small crash thereafter. New wave sequence formed, and on our way to wave 3. First point of support will be found at the 38.2%, where we can see price jump back up to the 61.8% or make a small bounce to then continue downward to the 23.6%. We may see an extension passed the 23.6% to the orange (macro view) 88.6% level before the bounce up.
Comment:
Short Entry