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- j.j on New FX Weekly Report posted
- Pierre Charlebois on EUR/USD - Is a new trend forming?
- j.j on EUR/USD - Is a new trend forming?
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I don’t have a handle on the internal wave structure of the apparent ending diagonal. So use caution as this is the last day of the month and just about anything can happen.
The posted chart shows the rejection at the top with a good sized wick on yesterday’s daily candle. The majority of the day saw USD strength.
The most recent 4 hour candle reversed the trend; however it closed with a 50% wick putting the trend in question.
I would expect more donwside at least to start the European session.
Good trading.
Here’s a look at the daily chart on the EUR/USD.
I have drawn out what could be an ending diagonal. I’m not that confident as the pattern is very messy however with the triple rejection at the top I would expect a little more re-tracement downward in the near term. (next day or two). This would create the correct overall look however the internal wave structure is not typical.
A visit to and then a turn up off the bottom trend-line would bolster this view.
Of course a break to new highs without further pull-back, leaves to the door open to a completely different possibility.
What does support this view is that the target for the top of wave three (which is where the multiple wicks are) is very often quite close to the previous high as it is in this case. That provides the trigger for a wave 4 pull back and then a return to the upside for the final top that typically forms a double top with the old wave 3 high.
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