At the significant level where it seems to be a strong resistance, price shows the strong rejection with a big rejected bar on W1 indicates that finally the seller would come back and decide to take back what they deserved. The short at around 1.761 would be expected depends on the momentum of the pullback up (if pullback up strong, we would have better...
FX:EURUSD has been recently in a downtrend. However, a sudden upturn took place during it and it comes together with heavy volume, which conclusively indicates a change in trend.
Price has already closed above the area, so, when possible, you traders can consider placing long positions.
Please, leave you honest feedback if you want to. :-)
Sell now when price go to fibo 78.6% zone of XA or wait until we has a confirm candle.
TP1 at fibo 38.2% zone of CD *
TP2 at fibo 61.8% zone of CD *
SL above X point.
R:R :1:1 and 1:2
*: should combined with support and resistance zone.
In this analysis, I believe that the market will make a 38.2 retracement of wave A.
(WAVE A: Bullish commencement - Potential Bear Wave/Consolidation )
Note that the dashed lines within the 38.2 area represent a channel of past support and resistance.
If my hypothesis is correct, then the market will return within that area.
I'm mainly focusing mainly on...
My mate @Bo here on TV gave me a heads up.
I can see the following on the chart:
- very stretched down swing
- coiling = something is cooking in here
- price landed nicely at the A/R line
The white fork is a "potential" projection of price.
If price close out of the L-MLH, then the fork is not valid anymore.
Let's see if there will be something more...