11 May 2015

MAJORS UPDATE 11.05.2015


The divergences on the H4 RSI indicate indecision in the market and as long as the rate is trading inside the range it is advisable not to enter any trades.

A break below 1.1080 would indicate the broader downtrend continuation and possibly take the rate down to yearly lows around 1.0500 in the coming weeks.

A break above 1.1290 should take the rate up further to test the last week's high at 1.1390 and possibly all the way up to 1.1500, however, only a strong daily close above this level would invalidate my medium term bearish outlook for the pair.


The rate is currently testing a  neckline of a larger inverse head and shoulders pattern at 1.5530. A daily close above this level would open up a way for upside targets at 1.6000 and even 1.6500.

A break below 1.5350 would invalidate my immediate bullish outlook for the pair as it would indicate a move towards last week's lows at 1.5100, however, only a break below this level back below the broken falling trendline would turn my overall outlook for the pair to bearish.


The rate seems to be forming a double bottom pattern at the rising trendline support. The 1.2200 level acts as the neckline and break above it should take the rate up to test the 1.2300 and 1.2350 levels.

A break below the most recent support at 1.2050 would add to a probability that we're looking at a descending triangle formation instead.

Only a daily close below 1.1950 level would invalidate my immediate and medium term bullish outlook for the pair.


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