* Detailed technical analysis :
* According to the Elliott rule, the price is in a corrective phase because it is at the beginning of the formation of the third wave of corrective waves after the end of the five impulsive waves
= So we conclude that the price will continue to collapse.
* The price formed the butterfly model, which is one of the harmonic patterns...
Global market sentimen:
US 10yr government bond yields reached a one-year high.
The Fed maintain accomodative policy
House Passes $1.9T Pandemic Bill On Near Party-Line Vote
Positive vaccine development.
This week major focus :
FOMC chair Powell's repeated insistence that policy will remain accommodative and mushrooming global recovery signals in a range of markets.
Next week preview :
Biden stimulus plan progress.
Pfizer, Moderna and J&J vaccine result .
I will be looking for opportunities for a long position. The price has returned to the value range with a fairly good volume. If it turned out that it reads the chart well, it will show one of the scenarios for a possible connection. A scenario that is quite conservative and has a relatively good risk-reward ratio.
1. Red square. I will expect sellers here. I...
Of course, I have no idea what will happen. If someone claims that he knows, he is a clown and ignorant (or works for a goldman and has the volume to move the market;)) But I know what I will do if one of the scenarios comes true. The little blue squares are the markings where I would be looking for L position.
If it were to specifically collapse, 1.20500 could...
EUR/USD has been in correction since the beginning of 2021, but now there may be an opportunity to buy from 1.2-1.205 level. Given that DXY is still below 91.2-91.3, we might see a further decline in the dollar. Buy @ 1.2-1.205, TP 1.22-1.23-1.235, SL 1.95.
The price has breached the strong resistance 1.21310
Expected scenarios:
The collapse continues to 1.20820 on condition that the price remains below the previously mentioned resistance
But if it breaks the resistance 1.21310 to the upside, it can buy and target 1.21765 as long as the price remains above the resistance
Looking at the chart of the euro futures contracts we may spot a possible Elliott Wave Pattern labeled as 1 to 5. It is a potential impulse wave that may soon come to an end. The theoretical resistance for wave 5 is set by 161,8 Fibonacci expansion of wave 1 placed at the end of wave 4.
If this area is defended the market may retrace back as potential wave A in a...
