Very strong sell trend, likely influence by major news/ fundamental analysis. However, such reactive price movement are bound to experience a corrective rebound effect. There is a long/buy opportunity as buyers/sellers are going to respond to support line.
Depending on how the rebound perform, this will inform if price will continue hovering at support line in...
*Refer to numbers plotted on the chart.
1. Price swing back up even after failing to sustain price above breakthrough.
2. Price dipped after initial breakthrough, followed by 2nd bearish candle confirmation
3. 3rd bearish candle did not reach new low, against previous candle.
Verdict: Buyer likely see a good opportunity to buy low sell high, near the blue support line.
1. Buyers unable to sustain breakthrough
2. Buyers managed to halt sellers (sell high buy low) attempt and test for second breakthrough - strong buyer sentiment.
3. Breakthrough failed and buyers unable to halt seller attempt.
4. Notice the latest W1 candle close near previous low. This usually signifies a coming buy attempt as sellers are unable to push be...
There are 2 likely scenarios;
(1) the price plummet further
(2) the price maintained and fluctuates for 7 days
I am leaning more towards (2) as it seems like buyers are just closing off positions for profits which prompted sellers' entries. However, due to the huge candle drop & buyers past strength, I am confident price will tank.
FX:USDJPY ; buyer is particularly strong as of now. But seller might be waiting for good entry once buyer breakthrough resistance line and cannot sustain price. I am waiting for more candle confirmations.
This might be a good entry point for short position, in anticipation of a big price drop, if buyer failed to maintain breakthrough for the 3rd time. Although buyer sentiment is strong, a reversal might happen which favors a 2:1 profit:loss ratio.
Buyer seems dominant. There is opportunity for long entry if price can be sustained above previous resistance line.
Subscribe to DrawForex.com today to receive notifications whenever there are new posts!
Buyer sentiment looks particularly dominant. They are able to stop seller momentum after a huge candle drop (W1, 16 Dec'19)
There is likely going to be a ranging trend for awhile as both buyer & seller attempt to breakthrough at two opposite sides.
Subscribe to DrawForex.com today to receive notifications whenever there are new posts!
FX:EURUSD
Not a good entry point as price is hovering at the extreme end. I am not a fan of opening trade when prices are near support or resistance line. Buyer will likely attempt 2nd breakthrough. If buyer did not managed to sustain price above resistance line after breakthrough, I will be looking for a short opportunity for scalping.
I am waiting for more...
