Watch the price action and read the order flow at 1.1631
Technical Analysis
The main trend is up according to the daily swing chart. If the upside momentum continues then the next target is the August 24, 2015 top at 1.1712. On the downside, the nearest support is the May 3, 2016 top at 1.1616. This is because old top tend to become new bottoms.
The EUR/USD is also up 12 days from its last main bottom so it is currently in the window of time for a potentially bearish closing price reversal top.
Forecast
Based on the current price at 1.1647 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to yesterday’s close at 1.1631.
A sustained move over 1.1631 will indicate the presence of buyers. This could generate enough upside momentum to challenge the main top at 1.1712.
A sustained move under 1.1631 will signal the presence of sellers. This will also put the EUR/USD in a position to form a potentially bearish closing price reversal top. I formed then confirmed, we could see the start of a 2 to 3 day correction.
If 1.1616 fails as support today then we could see a further decline into a pair of up-trending angles at 1.1578 and 1.1552.
Watch the price action and read the order flow at 1.1631 throughout today’s session. Trader reaction to this level will tell us if the buyers are still coming in to support the trend, or if sellers are taking control.
The main trend is up according to the daily swing chart. If the upside momentum continues then the next target is the August 24, 2015 top at 1.1712. On the downside, the nearest support is the May 3, 2016 top at 1.1616. This is because old top tend to become new bottoms.
The EUR/USD is also up 12 days from its last main bottom so it is currently in the window of time for a potentially bearish closing price reversal top.
Forecast
Based on the current price at 1.1647 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to yesterday’s close at 1.1631.
A sustained move over 1.1631 will indicate the presence of buyers. This could generate enough upside momentum to challenge the main top at 1.1712.
A sustained move under 1.1631 will signal the presence of sellers. This will also put the EUR/USD in a position to form a potentially bearish closing price reversal top. I formed then confirmed, we could see the start of a 2 to 3 day correction.
If 1.1616 fails as support today then we could see a further decline into a pair of up-trending angles at 1.1578 and 1.1552.
Watch the price action and read the order flow at 1.1631 throughout today’s session. Trader reaction to this level will tell us if the buyers are still coming in to support the trend, or if sellers are taking control.
Disclaimer
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