Thus they are not an ideal match for a pair to trade. However, since the
looked interesting, I will adress some ideas that the chart is producing.
First the backdrop,
Monthly TF: Trend is ( ) with a future (projected cloud), but
the pair is also trading below SMA200 which is descending. This can be regarded as
a retracement within a . has just made a X.
Weekly TF: Trend is Neutral ( ) with a future and the pair is trading
below SMA200 which is ascending. This can be regarded as a deep retracement in a
. just this week made a X.
On this we can see price is trading below the Yearly and has failed
twice to establish itself above it. For three days price has shot lower with something that
looks like a Three Dark Horses candle stick pattern. An impressive move. The projected
cloud has turned too.
IF price close below the Kumo Cloud next week along with a close below the Monthly S1
at 1.4576 we may see a continuation to the next which is 1.4430-65 (The lower
Kumo Cloud on Weekly TF and the white equilibrium line.
IF price finds support by the Monthly S1/Lower Kumo Cloud,
we may see a bounce from here, that can be exploited on lower time frame for scalping. Since both
Weekly and Daily crosses are , and the projected cloud has turned
too, things may gear up for a break out. But The Eur might also be heading into a strengthening
period, perhaps with rate hike expectations starting to build up (or other dovish measures that
ECB may introduce). Watch out for ECD rate decision next week.