Here is the Top-Down Analysis of EURUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 03 - Jan 18
M > Price has broken historical resistance trend-line. It tested weekly resistance and dropped facing rejection.
W > Price closed the week below weekly support. If it is able to hold on to the break of support we can expect more drop in price.
D > After breaking historical trend-line price consolidated creating a HH and HL respecting an upward trend-line as support and then dropped testing historical trend-line as support and upward trend-line as resistance. We can expect drop to test upward trend-line as support again and a rejection to the upside can be expected.
As per COT EUR closed major Short and added Long, this was a major swing as expected since institutions were building their portfolio of Short since last 4 reports. This swing was confirmed by continuation of EXY downward move for the second week.
4H > We can expect price to continue with the trend and test upward trend-line again as support.
Pair Correlation > EURUSD has positive correlation with EURJPY, NZDUSD, AUDUSD and CHFJPY and negative correlation with USDCHF and USDCAD.
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