Wednesday, August 9, 2017

The Approach - Wednesday and Thursday

When the euro was hitting multi-year resistance I felt as if the resist point at 119 was just good enough to bring down so in context to critical resistance as a tool of reference I found that price didn't act well in those areas of resistance in this first image  

I have a purple line which points out where my stop is located.  If the worst should happen I will be taken out there.  I will also change the location of the arrows to show the new trend because even though sellers stepped in where the arrows were placed above the pattern is changing and key points of advantage will change too





The writing was on the wall as far as continued weakness and the dollar index was showing strength.  In the second chart the breakouts on the left side were occurring positively and the trendline was violated and each period of congestion led to a breakout which ended in a bad way
what is the direction?  Well it is trending down and the resist points above appear to be overhead supply, and the supportive areas below do not support very well but the deeper you go the more sensitive the buyers become so it is likely that price will drift to S1 and I think from there it can take a break above I am including arrows to point out the direction of the lower highs as they occur.  






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