EUR vs USD Up Against The Ceiling!
The EUR vs USD is hitting a ceiling known as a resistance zone between 1.14512 & 1.15400 We might see price penetrate this zone but I think we will see a correction here. Our current daily candle is known as a Hanging Man which represents possible reversal of an uptrend and better yet it is at the resistance zone. The Hanging Man is telling us that there was significant sell of at the bottom of the zone even though the bulls pushed this back up it lets us know there are bears in this territory so bring your bear spray! If we get the reversal I am looking at a few levels where the market may find support before continuing the uptrend. First price likes to retrace back to previous fractal levels and there is a fractal zone between 1.12306 & 1.12877 which would be about a 230 pip retracement. If this level is violated then look to the Kijun to see the market get back into equilibrium. When price get's too far from Kijun much like it is now we usually see price pull back to the Kijun or ranging at the level until Kijun and the market get closer together. Since we never know where the market may retrace to we have to have our levels of preparation to continue with the current market direction. Violating the Kijun would also violate the Kumo top therefore sending the price to the bottom of the Kumo and a possible Kumo Breakout. This is long term but on the shorter side I am bearish until we see a pullback to the fractal zone and a continuation of the bullish trend.
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