Optimistic Market on remarks by Fed Chair, J Powell ♦️
Updated
The Market is Flying with Optimism
after ADP data was better
than Forecasted, Services data missed forecasts
but Fed Chair Jerome Powell
has said that he does not think that
inflation is reversing higher. The monthly candle has flipped bullish along with the Weekly candle as price has done a complete 180 from our initial selloff early in the week. Yes, we dropped to begin the month but it was the first day of the month and each monthly candle has a top and bottom wick. The tuesday daily candle closed back above the weekly level 1.0765. The wednesday daily candle dropped slightly and retested 1.0765 prior to blasting to outer space. That is one mighty candle and trading against itis not impossible but will require extra monitoring. We observed some very nice volatility today as we completely blew through the daily resistance zone 1.079 and are currrently testing daily resistance level 1.08372. The asian session 4hr candle closed above this daily level 1.08372 and we may keep flying . If not, and we come back down to earth, then I anticipate a retest of 1Hr support zone 1.0833 prior to more significant buying pressure. London may just shoot up to the next 4hr zone then pullback as we transition into New York Open is another scenario that could play out. We may observe some volatile ranging prior to NFP on Friday. It's important to look left to see what zones are most relevant for the new days trading. the prices I like for the upcoming sessions include 1.08429 1hr zone, 1.08524 4hr resistance zone, and 1.08330 1hr support zone.. safe trading
after ADP data was better
than Forecasted, Services data missed forecasts
but Fed Chair Jerome Powell
has said that he does not think that
inflation is reversing higher. The monthly candle has flipped bullish along with the Weekly candle as price has done a complete 180 from our initial selloff early in the week. Yes, we dropped to begin the month but it was the first day of the month and each monthly candle has a top and bottom wick. The tuesday daily candle closed back above the weekly level 1.0765. The wednesday daily candle dropped slightly and retested 1.0765 prior to blasting to outer space. That is one mighty candle and trading against itis not impossible but will require extra monitoring. We observed some very nice volatility today as we completely blew through the daily resistance zone 1.079 and are currrently testing daily resistance level 1.08372. The asian session 4hr candle closed above this daily level 1.08372 and we may keep flying . If not, and we come back down to earth, then I anticipate a retest of 1Hr support zone 1.0833 prior to more significant buying pressure. London may just shoot up to the next 4hr zone then pullback as we transition into New York Open is another scenario that could play out. We may observe some volatile ranging prior to NFP on Friday. It's important to look left to see what zones are most relevant for the new days trading. the prices I like for the upcoming sessions include 1.08429 1hr zone, 1.08524 4hr resistance zone, and 1.08330 1hr support zone.. safe trading
Note
another scenario : we can observe a 4hr candle that lacks a top wick.. we can also combine this with a Daily Resistance level 1.08372.. and the fact that we observed major upside volatility today. There must be some banks/instituitons wanting to take some chips off the table and so it's possible we may observe a healthy pullback to 1.08330 1hr support zone or 1.082 before more buying pressure is observed on EurUsd.. If not then buyers may orchestrate buy positions off the 1.08372 daily level similar to what we did to 1.0765 weekly level earlier today during London session✍🏼 Note
the market ran up as we anticpated with our Long analysis before crashing down as profit taking and sellers took over.. our 1hr/4hr levels got respected quite nicely nonetheless and the Daily candle actually closed below the Daily level 1.08372, this is not good for Longs in the final sessions of trading for this upcoming week. 
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.