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THIS IS ONE OF OUR CLASSIC BLOG POSTS ON WHAT IT TAKES TO BE A WINNING TRADER RATHER THAN A LOSING ONE
EURUSD 4h
Resistance at 1.07000 & 1.07250
Support at 1.06700 & 1.06500
Told you that this is going to happen. So what now ?
Two options:
–Â Â Â Â Â Â Â Â Â Break above the EMA 50 and test of 1.07500 & even 1.07750
–Â Â Â Â Â Â Â Â Â Meeting with 1.07250 and sudden drop , followed by the break of 1.06000 and continuation of the steep downtrend
Watch for Initial Jobless Claims today and bunch of other US data tomorrow
XBRUSD 4 HOUR CHART (Brent CFD)
Let’s look at the price action in crude following the spike high on geopolitical events and subsequent retreat despite ongoing concerns..
With the focus on interest rates and sticky inflation, the price of energy will play a role as central bank decisiosn on when or how much to cut interest rates.
This chart shows potential for an exhaustion on the upside but would probably have to take out the $85 level to suggest more scope on the downside.
Reminder this is a CFD price feed and levels may differ from what your broker shows. So look at the chart patterns and line them up with your charts.
EURUSD 4 HOUR CHART – JYST A CORRECTION?
As I pointed out, there appeared to be an invisible hand protecting 1.06, which in turn has seen EURUSD correct.
The question then is does the correction have more legs?
On one hand, what has changed is there are no key stops to go after until below 1.06, currently protected by 1.0630.
On the other hand, as the chart shows, the next key level is not until 1.0756, leaving the high of the day at 1.0690 as a key intra-day level which would need to be taken out to extend the retracement.
So, where does this leave us?
It leaves us with a focus on yesterday’s breakout level at 1.0665 needing to hold to keep a bid. Otherwise, look for 1.0650 to exert its magnetic pull.
I POSTED THIS IN OUR BLOG YESTERDAY AND IT TURNED OUT TO BE A TIMELY ARTICLE.
LOOKING ACROSS CURRENCIES AND OTHER MARKETS TODAY SOME WILL CALL IT A CORRECTION DAY.
i CALL IT A LIQUIDATING MARKET DAY, ONE THAT NEEDS TO BE TRADED DIFFERENTLY AS YOU WILL SEE IN THE ARTICLE.
BTC 4 HOUR CHART – HAS THE AIR COME OUT OF THE BALLO0N?
As I pointed out previously, BTC was not seeing safe-haven flows despite the current geopolitical situation.
This may have been a clue that the air was coming out but looking at this chart the blue AT lines dominating showed a risk on the downside.
What amazes me about BTC is that is when a technical level or pattern holds in something that can move 7% on a Saturday.
With that said, the move below 60000 came close to a key level (see chart) which if broken would leave a void until around 50000.
This shows the importance of 60000 as a pivotal level and the key support line below it.
EURUSD 4 HOUR CHART – TRYING TO CORRECT BUT…
Looking at this chart the key level on the upside is clear at 1.0665.
Often, when in a sharp trend, there needs to be a squeeze on weak positions to run some stops )e.g. above 1.0665) before setting a fresh run at a new low or high.
This is the setup after an invisible hand held its finger in the dyke at 1.06.
Whether it materializes or not is still up in the air so just pointing out a risk.
Otherwise, the trend is still your friend.
