EURCHF to go lower.
The pair is confined within a range since Nov-18.
The range is more or less about 270 pips in between.
Within this range created a descending resistance line and each time it tested the line if failed with a bearish key reversal.
Expecting the pair to go lower and eventually break the support line towards 1.1080.
Why is this so:
It has double bottom with bullish divergence.
Price penetrated the double bottom neckline and go higher before pulling back.
The pullback tested the support/neckline and created a bullish key reversal.
Already LONG at 1.5885.
Price will probably move higher at least towards resistance at 1.6335.
Why is this so?
Price following the double top & bearish divergence pattern.
Price re-tested DT neckline but failed with bearish reversal.
Combination of inside bar and key reversal usually indicating that price to accelerate lower towards 0.6600.
Already sold at 0.6825.
Why is this so?
Some of the reasons was stated in the Dec-13 post.
The pair achieved target and make a pullback.
A flash moved on Jan-3 make a huge reversal.
Price moved lower however failed to continue.
Price tested the inverted H&S and closed higher.
Price might move higher towards 1.6590 area.
Already LONG at 1.6052
Why I think it is bearish:
The pair seems to have created a head and shoulder pattern.
Neckline was penetrated a few days ago with a huge bearish outside key reversal candle.
Price retested support and failed with the appearance of a bearish key reversal.
Already short the pair at 0.9584.
Price might go lower towards 0.9145 area.
Why it is lower?
The pair has been lower since the creation of a double top and bearish divergence since early this year.
However after price penetrated the double top neckline, it retested it in May and since then price moved within within a well defined range.
Price move into a consolidation since late Oct and created a descending triangle.
A few days...
EURAUD to go higher?
This might be an early call. However the signs that this pair is going higher are:
It seems that there is a double bottom at support.
Double bottom also shown a bullish divergence from indicator.
Potentially the pair is in the process of creating an inverted head and shoulder. Not the usual straight forward inverted head and shoulder but...
Why it is going lower?
The pair confined within the ascending triangle.
Ascending triangle can breakout either higher or lower and for this pair it is expected to break lower.
Yesterday’s price action shown that price penetrated the support of the triangle with key reversal.
A combination of Friday’s inside day bar and yesterday’s key reversal give a...
Why it is BEARISH?
it seems that there is a not so typical head and should being created which is bearish.
price already penetrated the h&s neckline.
there is a support line since the end of Aug-18 that had been penetrated and the line is now act as a resistance.
there is a pullback to the resistance line and attempt to break it however it is failed and...
GBPNZD ready for pullback?
There seems to be either a triple bottom or inverted head and shoulder in the 4 hours chart. Yet to confirm since price yet to penetrate neckline.
Volume seems to be higher on the left side compared to the left.
Expect the pair to pullback to at least the resistance line.
Why it is long:
Double bottom and bullish divergence
Price currently within ascending channel
There seems to be a higher high and higher low
Bullish key reversals showing at the support of the channel
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Looking at the daily chart, the pair might be in the process of creating inverted head & shoulder. It also shown a bullish divergence. Even though it went lower after BOC decision on Wednesday there is no follow through. Inside bar emerged on Thursday and on Friday the pair move higher with key reversal. A key reversal created on Friday is not really reliable...