Hello Traders,
Here is the Top-Down Analysis of EURUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price has downward move supported by a downward resistance line. We can see two W patterns and this provides us two targets to the downside. Both targets are near 0.382 and 0.618 Fib levels on last monthly bullish impulse.
W > We saw deceleration of price for 7 weeks before it dropped 2 weeks ago.
D > Deceleration found support with an upward support trend line and its break gave us bearish confirmation. Price returned back to test trend line as resistance but could not continue with further drop.
As per COT EUR saw closure of Long and addition of Short, reducing net positions; improving its position for the said week. EXY further improved its position last week.
Overall EUR has huge quantum of net position, since past 2 quarters, with much more open Long positions then Short. This reflects Institution holding their Long positions for bigger gain in time to come, EUR will continue to be strong till the time we see major chunk of Short added for Institutions.
4H > Upon its attempt to pull back to test trend line as resistance price is making HH and HL in a rising channel. Price is now moving upwards approaching its previous deceleration/ consolidation. We do not have any bullish target yet and for bearish target we have to wait for price to break rising channel again.
Pair Correlation > EURUSD has positive correlation with XAGUSD, EURJPY, AUDCAD and AUDUSD and negative correlation with USDCHF.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price has downward move supported by a downward resistance line. We can see two W patterns and this provides us two targets to the downside. Both targets are near 0.382 and 0.618 Fib levels on last monthly bullish impulse.
W > We saw deceleration of price for 7 weeks before it dropped 2 weeks ago.
D > Deceleration found support with an upward support trend line and its break gave us bearish confirmation. Price returned back to test trend line as resistance but could not continue with further drop.
As per COT EUR saw closure of Long and addition of Short, reducing net positions; improving its position for the said week. EXY further improved its position last week.
Overall EUR has huge quantum of net position, since past 2 quarters, with much more open Long positions then Short. This reflects Institution holding their Long positions for bigger gain in time to come, EUR will continue to be strong till the time we see major chunk of Short added for Institutions.
4H > Upon its attempt to pull back to test trend line as resistance price is making HH and HL in a rising channel. Price is now moving upwards approaching its previous deceleration/ consolidation. We do not have any bullish target yet and for bearish target we have to wait for price to break rising channel again.
Pair Correlation > EURUSD has positive correlation with XAGUSD, EURJPY, AUDCAD and AUDUSD and negative correlation with USDCHF.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX