Here's an updated analysis on a possible
reversal pattern forming in the Sep Euro...
The
Euro has been trading higher since its Jan 3rd low of 1.0500 on the Sep
contract. This recent uptrend has a
dominant MM with deep retracement and 19:17 right-handed skewing. The 1st level supporting MM has deep
retracement with 10:10 neutral-handed skewing.
Together they create my Fade Zone (1.14665 to 1.22354). Because both retracements are larger than
50%, I consider this a weak uptrend that
should produce a nice downside move if a high is established within it. In addition, there's a 2nd level supporting
MM with a shallow retracement and 3:3 neutral-handed skewing. This last piece provides a Fib extension of
its own from 1.1393 to 1.1762. It's this
last MM that could help narrow down my overall Fade Zone. Overlapping the two gives me the 1st area
(1.14665 to 1.17620) that I will focus on for a possible bearish trade. Finally, on the weekly chart, there's a
bearish MM Pullback pattern developing.
The resistance zone is between 1.14812 and 1.15631 (red box in
chart). That could end up being the
sweet spot.
