Analysis of the EUR/USD Daily Graph:
In the previous week, the EURUSD finished the day by a 121 pips rising… Nothing special, it was technical…Why? Because on the 4h chart the rate broke up a rising wedge. The first time, it broke up was on 15 March and had a Pull-Back on this wedge before seeing a sharp increase… Why am I analyzing this now? For want of time.
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For the next few days, the trend is still Bearish – let me explain; on daily graph, we have a candle which closed above the 61,8% of Fibonacci retracement. The rule is that, when this happen, the rate should reach the next level. The RSI is rising, the stochastic cross up this signal; the momentum is rising too. The Moving Average (MA) 20 is rising, and the Rate is above the MA 7.
BUT, in technical analysis, we must remember that when the rate is under the MA20 the trend is still BEARISH!
Furthermore, we have a beautiful sinister falling wedge (in Blue with red lines) which gives us a falling target to 1.2860-63. This target is not reached. And it gives us a worse TARGET: 1.1920. It’s really the extreme point and I hope it will not be reached. But the EUR/USD is under some technical pressure and there is still the probability that this target will be reached as the wedge will not get invalidated! This will be invalidated if the rate will come above the wedge at 1.35.
One positive thing: With the rising wedge we get more positives targets: 1.3323 and 1.3415. On Friday, the rate broke up the wedge’s resistance and it looks like it’s going to reach 1.3323.
That’s why I made the title of this post “Terrible match,” because the Bulls are trying to take the upper hand while we are still under the pressure of Bears.
I offer an example of Falling wedge with two targets that were both reached.
In my personal opinion, I’m not trading on Daily graph. I prefer trade on the 1h and 4h and doing intraday.
Take care of yourself my friends and to the Bulls I say be careful because the Bears are still near.
In the previous week, the EURUSD finished the day by a 121 pips rising… Nothing special, it was technical…Why? Because on the 4h chart the rate broke up a rising wedge. The first time, it broke up was on 15 March and had a Pull-Back on this wedge before seeing a sharp increase… Why am I analyzing this now? For want of time.
John057’s Profile Page
For the next few days, the trend is still Bearish – let me explain; on daily graph, we have a candle which closed above the 61,8% of Fibonacci retracement. The rule is that, when this happen, the rate should reach the next level. The RSI is rising, the stochastic cross up this signal; the momentum is rising too. The Moving Average (MA) 20 is rising, and the Rate is above the MA 7.
BUT, in technical analysis, we must remember that when the rate is under the MA20 the trend is still BEARISH!
Furthermore, we have a beautiful sinister falling wedge (in Blue with red lines) which gives us a falling target to 1.2860-63. This target is not reached. And it gives us a worse TARGET: 1.1920. It’s really the extreme point and I hope it will not be reached. But the EUR/USD is under some technical pressure and there is still the probability that this target will be reached as the wedge will not get invalidated! This will be invalidated if the rate will come above the wedge at 1.35.
One positive thing: With the rising wedge we get more positives targets: 1.3323 and 1.3415. On Friday, the rate broke up the wedge’s resistance and it looks like it’s going to reach 1.3323.
That’s why I made the title of this post “Terrible match,” because the Bulls are trying to take the upper hand while we are still under the pressure of Bears.
I offer an example of Falling wedge with two targets that were both reached.
In my personal opinion, I’m not trading on Daily graph. I prefer trade on the 1h and 4h and doing intraday.
Take care of yourself my friends and to the Bulls I say be careful because the Bears are still near.
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