Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Red lines- critical marks for the current time frame
as we predicted!
From last week’s COT Report we can see an increase in the GBP “short” contracts, while the JPY is at its “long” size contract peak with record values since 2013. However last week’s JPY COT Report indicated a big drop of “long” contracts.
On the monthly time frame, we are in a closed triangle that has been respected multiple times since March 2016. Its last touch was the bottom-resistance line, so the monthly trend should be towards the 140.000 area, where the upper-trendline can be met.
On the 4H time frame we are in a closed triangle formation since the beginning of March 2020. It has also been respected multiple time and it even broke our last downtrend, not allowing it to finish its last down wave move.
Now we have already touched the bottom-trendline, so our next target is the 137.5 area. As I mentioned in my previous report which I also linked above- the price will receive strong support from the 134.000 area but will meet the sell pressure at the previous lower highs near the psychological 136.000 mark.
A good entry can be the 134.5 support/resistance zone, but an even better one is the 133.5 neckline area, since we are for more than a month in a “W” structure, where massive institutional buy pressure may come from that zone. The bottom-trendline of the closed triangle is also there and will be viewed as additional buy pressure.
Happy Trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Red lines- critical marks for the current time frame
From last week’s COT Report we can see an increase in the GBP “short” contracts, while the JPY is at its “long” size contract peak with record values since 2013. However last week’s JPY COT Report indicated a big drop of “long” contracts.
On the monthly time frame, we are in a closed triangle that has been respected multiple times since March 2016. Its last touch was the bottom-resistance line, so the monthly trend should be towards the 140.000 area, where the upper-trendline can be met.
On the 4H time frame we are in a closed triangle formation since the beginning of March 2020. It has also been respected multiple time and it even broke our last downtrend, not allowing it to finish its last down wave move.
Now we have already touched the bottom-trendline, so our next target is the 137.5 area. As I mentioned in my previous report which I also linked above- the price will receive strong support from the 134.000 area but will meet the sell pressure at the previous lower highs near the psychological 136.000 mark.
A good entry can be the 134.5 support/resistance zone, but an even better one is the 133.5 neckline area, since we are for more than a month in a “W” structure, where massive institutional buy pressure may come from that zone. The bottom-trendline of the closed triangle is also there and will be viewed as additional buy pressure.
Happy Trading!