Apologies for being out of the scenes this past January. Going forward in the coming months more technical articles will be written according to my perspective of what i see happening in the markets. It is therefore important to supplement my analysis with your own sentiments where necessary. Moving on, here we have EURUSD capped be a declining trendline on the Daily Timeframe. We can see some bullish action came into the market these past weeks and even managed to break 1.14446 Resistance level which was pivotal in determining the pairs next wave. However, we had a 3rd touch reaction of the trendline highlighting that bears still have the upper hand. As long as the 1.14004 threshold sustains we are very much in bullish territory and bullish targets for this move will be 1.15534. Also looking at the flip side of the coin, the linear resistance has technically held and price could continue its correction since we are already beginning to form what appears to be a bearish leg to 1.13462 but for this to materialize 1.14004 needs to be broken on the Hourly Timeframe.
Trade active:
1.14004 has been hit and served as my temporary bearish targets. From here, price formed an FTR candle on right on the 1.14004 level of support. Irrespective of the apparent bearish signals forming, i am not content with how price reacted on 1.14004. This indicates to me that bulls are the reason for resistance here which is clearly shown by the choppiness of price action. For now, all short positions have been closed having made 53pips per position.
Comment:
Bearish leg in motion with 1.13462 en route. As long as price manages to stay below 1.14127 there is room for the continued decline
Trade closed: target reached:
Bearish target attained. From here on i will be on the lookout for bullish momentum along the lines of 1.13182 as i believe this will be the final correction level before the bulls take over.