Eurusd is froming a key reversal today. We have to wait for the daily close, and even after the daily close this can be easily reversed by tomorrow, it's possible we will be having the pullback to the 200 SMA in the following days.
If this plays out the minimum where price drops is the 50 EMA at 1.060 . This price level is also the 23,6% FIB retracement.
If we can break 1.060 the next level to tag is the 2023.01.06 low at 1.04830 and this where the 200 SMA runs.
Let's see if we can break the 10 EMA by printing a key reversal today.
If this plays out the minimum where price drops is the 50 EMA at 1.060 . This price level is also the 23,6% FIB retracement.
If we can break 1.060 the next level to tag is the 2023.01.06 low at 1.04830 and this where the 200 SMA runs.
Let's see if we can break the 10 EMA by printing a key reversal today.
Comment:
We have an important daily data today which will affect gold and dollar prices. the US core PCE index was at 4.7% in November and is expected to decline to 4.4% in December. I think the data will be 4.2-4.3% what clearly shows that the Federal Reserve’s aggressive monetary policy has effectively decreased inflation.
Comment:
We didn’t print the key reversal on the daily chart yesterday. We printed a hanging man candlestick pattern: small real body, little upper shadow and a lower shadow more than twice the length of the body.
Comment:
We had the Upward trend -The hanging man can only be identified as such once it has formed at the top of an uptrend.
The hanging man candle can either be a green candle , or a red candle. The red candle what we had in this case provides a better indication of a weakening market. A small upper shadow indicates that there was an attempt to maintain the current uptrend before the significant drop in the price of Euro.
Long lower shadow: shows the significant sell off before the bulls tried to regains some ground forcing the closing price to end up somewhat closer to opening levels but still down for the period.
The hanging man candle can either be a green candle , or a red candle. The red candle what we had in this case provides a better indication of a weakening market. A small upper shadow indicates that there was an attempt to maintain the current uptrend before the significant drop in the price of Euro.
Long lower shadow: shows the significant sell off before the bulls tried to regains some ground forcing the closing price to end up somewhat closer to opening levels but still down for the period.
Comment:
And we have a follow through today just as I expected yesterday.
Comment:
Falling as predicted.