Hello guys, here is the market reaction during previous 0.25 bp rate hike by Norge bank. There was another 0.25 bp rate hike today and supported by last night 0.25 cut by FED and last week 0.10 bp by ECB, such behaviour makes no sense to me.
Opinions are welcome. I am staying short here, waiting as long as needed, but trying to understand Why?
4H CHART EXPLANATION:
In the short term, we observe a Descending Wedge Pattern being formed by the last downtrend. Now we are waiting for a pullback towards the Confluence Zone between the Top of the Wedge Pattern and the Broken Ascending Trendline, and after that a bounce to continue the downside move. This is the short term vision, the mid and long term are...
Entry : Bottom of the trendline
TP : Top of the channel, could potentially hold and see if it breaks,in which case take your profits on a 1D wick backwards/a clear sign of reversal (RSI,BB, previous resistances)
SL : 0.20%
The pair is consolidating on 4H (RSI = 49.952) awaiting for a break out. 1D has followed a perfect symmetry so far on 1D (Inverse Head and Shoulders) and if the 1D MA50 breaks, we expect the price to test the 9.6450 Support.
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