Market analysis and trade recommendations by FBS

[riki143]

EUR/USD: "Three Methods" pushing the price higher
3/27/2017

The price is still rising and there isn’t any reversal pattern so far. Also, we’ve got a new “Window”, which is likely going to act as a support soon. If a pullback from this level happens, there’ll be an opportunity to have a new high.

The last “Window” is still open. At the same time, we’ve got a “Three Methods” pattern, which has been confirmed enough. Therefore, bulls are likely going to continue pushing the market even higher until any bearish pattern arrives.

More:
https://new.fxbazooka.com/analytics/13014

 

[riki143]

USD/JPY: unstoppable bears
3/27/2017

The price is still declining, so we don’t have any reversal pattern. Therefore, the market is likely going to test the nearest support in the short term. If any bullish pattern arrives afterwards, there’ll be an option to have an upward correction.

We’ve got a new “Window”, which is still open. Also, there’s a “Three Methods” pattern, so the price is likely going to test the closes support level, which could be a departure point to a bullish correction.

More:
https://new.fxbazooka.com/analytics/13015

 

[riki143]

Ed Seykota’s profile: common man with great achievements
3/27/2017

Every journalist even mediocre one without a spark of talent before writing an article should think of the structure of his future writing. And I must admit it is a rather stiff task especially when you’re challenged with writing about one man’s uneventful life vividly only in order to make a note of his great achievement. I was faced with such task when I was asked to write about Ed Seykota, a person whose life is not marked with some bright events, but whose contribution to trading activities is invaluable. So, pondering over the article’s structure, I’ve decided not to burden you with dull descriptions of Seykota’s life (in the end, I’m not a Wikipedia), but to focus only on his educational background, career and some other facts.

General information

Professional trader Ed Seykota is a Netherlands-born American commodity trader.

He graduated with degrees in Electrical engineering from MIT and Management from the MIT Sloan School of Management. He started his experiments with trading systems in the 1970s when he had only a few punched card computers to test his genius market ideas.

Career

In 1960, Ed decided to go long on silver after the US Treasury stopped selling it (trend following is one of the most favorable Seykota’s trading strategies). He lost his money on this silver trade and a copper one, but learned a hard lesson about the market’s susceptibility to the news.

Later on, he started working for one futures brokerage house. It was the time when he first tried his computerized trading system based on exponential moving averages. Afterwards, he decided to venture out on his own firm and manage of some of his client’s accounts. During that time, he gained eminent profits trading with the help of his computerized trading systems. The accounts Seykota managed showed an absolutely outstanding rate of return (starting with just $5,000 and earning 15, 000 000 in 12 years).

Some other facts

In 1992, Ed gathered a group of traders to discuss their emotions which according to Market Wizard Seykota (Jack Schwager included interview with Seykota in his famous book about the most successful traders of his time “Market Wizards”), are the key spoilers of trade. All together they managed to gather a set of common practices that help to avoid big losses and support personal growth. Seykota described them in his book The Trading Tribe 2005.

Seykota prefers trading mostly from his home office generating trade signals from his computer programs. A part of his time he spends on mentoring traders through his website.

More:
https://new.fxbazooka.com/analytics/13016

 

[riki143]

USD/CHF reached sell target 0.9890
3/27/2017

USD/CHF reached sell target 0.9890
Next sell target - 0.9750
USD/CHF continues to fall sharply – following the earlier breakout of the pivotal support level 0.9890 (which stopped the previous sharp minor impulse wave 1 in January and which was set as the sell target in our previous forecasts for this currency pair). The breakout of the support level 0.9890 intensified the bearish pressure on this currency pair.

USD/CHF is expected to fall further to the next sell target at the support level 0.9750 (forecast price for the termination of the active intermediate impulse wave (1)).

More:
https://new.fxbazooka.com/analytics/13017

 

[riki143]

EUR/AUD broke resistance zone
3/27/2017

EUR/AUD broke resistance zone
Next buy target - 1.4400
EUR/AUD continues to rise after the earlier breakout of the combined resistance zone lying between the resistance level 1.4180 (which stopped the previous sharp (a)-wave earlier this month), the 100-day moving average, resistance trendline of the wide daily down channel from 2016 and the 50% Fibonacci correction of the previous sharp minor impulse wave (i) from December.

EUR/AUD is expected to rise further in the active minor ABC correction (ii) toward the next buy target at the resistance level 1.4400.

More:
https://new.fxbazooka.com/analytics/13018

 

[riki143]

USD/JPY: the yen is accelerating its pace
3/28/2017

On the USD/JPY daily chart, quotes returned to the borders of the downward trading channel. The bears regained control over the pair. We expect the continuation of the downward movements towards i108.8 (50% of the last long-term upward wave) and 107.7 (target 200% in the AB = CD pattern). The nearest important resistance levels can be found near 111.15 and 111.55-111.75.

On the USD/CAD hourly chart, the quotes are sliding towards 161.8% and 224% targets in the AB = CD patterns (109.5-109.7). If they go out from the downward trading channel, it will lead to the correction to 111.45-111.55.

Recommendation: SELL 111,55 SL 112,10 TP 109,7.

More:
https://new.fxbazooka.com/analytics/13022

 

[riki143]

USD/CHF: bears are heading to the south
3/28/2017

On the USD/CHFdaily chart, there is an implementation of 5-0, "Shark" and AB = CD patterns. Their 88.6% and 161.8% targets allow us to identify the convergence zone (0.9615-0.9665). In this area, the probability of a trend reversal is high. To remain control over the "bears", it is necessary to keep quotes below the 0.9855 level.

On the USD/CHF hourly chart, the expanding wedge reversal pattern has been realized. After the breakouts of the supports at 0.9927 and 0.9896, the market is under the bears' control now. In such circumstances, the best strategy would be selling on the rise of quotes towards resistances at 0.995 and 0.999.

Recommendation: SELL 0,995 SL 1,0005 TP1 0,982 TP2 0,9665.

More:
https://new.fxbazooka.com/analytics/13023

 

[riki143]

EUR/USD: euro located under daily resistance
3/28/2017

Technical levels: support – 1.0820; resistance – 1.0930.

Trade recommendations:

1. Sell — 1.0930; SL — 1.0950; TP1 — 1.0820; TP2 – 1.0800.

Reason: bullish Ichimoku Cloud, rising Senkou Span A and B; a new golden cross of Tenkan-sen and Kijun-sen, rising Tenkan-sen; the prices are under strong daily resistance.

More:
https://new.fxbazooka.com/analytics/13024

 

[riki143]

USD/JPY: Dollar may go lower
3/28/2017

Technical levels: support – 110.40, 109.90; resistance – 110.70, 111.00.

Trade recommendations:

1. Sell — 110.70; SL — 111.00; TP1 — 110.40; TP2 — 109.90.

Reason: expanding bearish Ichimoku Cloud, falling Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen, falling Tenkan-sen; the prices are under resistance of Tenkan-sen and Kijun-sen.

More:
https://new.fxbazooka.com/analytics/13025

 

[riki143]

Morning brief for March 28
3/28/2017

Last week, Trump’s collaborators failed to garner enough support to a piece of legislation aimed at repealing the Affordable Care Act (Obamacare act) even with a Republican-controlled Congress. It raised fears among the investors over Trump’s inability to enact pro-growth policies. The US 10-year bond yield hit its month low on Monday. The US equities experienced a massive selloff. In the Tokyo morning, the investors’ anxiety over President Trump’s setback on Obamacare reform gave away; their confidence in Trump’s administration has returned.

The euro spiked to its highest point since November overnight (1.0905) as we got upbeat German Ifo Survey for March. The survey was the strongest since 2011; the headline Business Climate Index printed at 112.3. Overall, German economy grew1.9% last year that is stronger than 1.6% in 2015. ECB Chief Economist Peter Praet has recently noted that Eurozone deflation risk has almost gone. He also said that at the present moment it is premature to talk about a QE exit as ECB policymakers still didn’t achieved the expected effects from their loosening policies (some of the most indebted countries use QE for more spending rather that for shrinking their debt). The economic calendar for EUR/USD is light today with US Consumer Confidence and Fed’s speaker.

Aussie is still hovering around 0.7615. A pullback below 0.7600 towards the immediate support at 0.7555 will tell us about the restoration of the downtrend. On the upside, the nearest resistance can be found at around 0.7700. In the early hours of Tokyo morning, we heard Guy Debelle, the RBA Deputy Governor speaking of the FX code of conduct. There were no comments on the Australian economy, no mention of the RBA monetary measures.

NZD/USD is trading below the key resistance at 38.2% Fibo level (0.7050) traced from last year low. There is a chance of the uptrend restoration. A successful test of 0.7090 will tell us about the uptrend recovery. The economic calendar is empty.

GBP/USD spiked to 1.2617 overnight. In the Asian session, the British pound slid to 1.2555 as we approach the day X – a day of the formal trigger of Article 50 leading to the Britain’s withdrawal from the EU.

USD/CAD gained some additional points in today’s session. The quotes rose to 1.3386. BoC Governor Poloz is speaking tonight at Durham College. We don’t expect him dropping some subtle clues on the bank’s future monetary policies. So, the speech might be a non-event for USD/CAD.

In commodities, the relative weakness of the US dollar has helped oil prices to recover from their earlier losses (to $51.12). But there is a little scope for the uptrend recovery as concerns over the output cut deal are still present.

The belly is not filled with fair words, but we bet you’ve already had your breakfast

More:
https://new.fxbazooka.com/analytics/13026

 

[riki143]

Key option levels for Tuesday, March 28th
3/28/2017

EUR/USD

Main trend Short-term period Medium-term period
Bearish Neutral
Changes in the open interest -No Data- -No Data-
Closest resistance levels 1.0896; 1.0927; 1.0954
Closest support levels 1.0867; 1.0831; 1.0795; 1.0774
Trading recommendations
Baseline scenario Short EUR/USD below 1.0867 (or from 1.0896), with target points at 1.0831 and 1.0795
Alternative scenario Moving above 1.0896 can be considered as a signal to Buy the pair, with target at 1.0927 and 1.0954

GBP/USD

Main trend Short-term period Medium-term period
Bullish Bearish
Changes in the open interest -No Data- -No Data-
Closest resistance levels 1.2612; 1.2635; 1.2653; 1.2676
Closest support levels 1.2567; 1.2538; 1.2517; 1.2490
Trading recommendations
Baseline scenario Long GBP/USD above 1.2612, with target points at 1.2635 and 1.2653
Alternative scenario Moving below 1.2567 can be considered as a signal to Sell the pair, with target at 1.2538 and 1.2517

USD/CAD

https://new.fxbazooka.com/img/articles/13028/USDCAD(133).png[/MG]

Main trend Short-term period Medium-term period
Bullish Bullish
Changes in the open interest -No Data- -No Data-
Closest resistance levels 1.3385; 1.3416; 1.3466; 1.3492; 1.3534
Closest support levels 1.3360; 1.3339; 1.3316; 1.3277
Trading recommendations
Baseline scenario Long USD/CAD above 1.3385, with the target points at 1.3416 and 1.3466
Alternative scenario Moving below 1.3360 can be considered as a signal to Sell the pair, with target at 1.3339 and 1.3316

More:
[URL=https://new.fxbazooka.com/analytics/13028]https://new.fxbazooka.com/analytics/13028[/URL]

 

[riki143]

Trading formal Brexit trigger – Article 50
3/28/2017

General Information

UK Prime Minister Theresa May is going to file divorce papers on March 29 at 14:30 MT time. This will start a two-year process for the UK to negotiate its trade terms with the EU.

European Council President Donald Tusk announced that he will distribute the draft Brexit guidelines among the EU member countries within 48 hours of the UK invoking Article 50. A more detailed stance will probably be delivered later, and the official negotiations may not start until June.

Positions of two parties of the talks

UK

Ms. May’s main objectives include getting a good free trade deal, continuing working together with EU members on such vital issues like security. Also, UK Prime Minister has indicated that she is ready to lean towards a hard Brexit if needed to restore UK control over immigration.

EU

Michel Barnier, European Chief Negotiator for Brexit, has recently hinted on Twitter that the remaining EU members are determined to impose customs controls despite May’s intentions to secure a “frictionless trade.” As Jean-Claude Juncker once claimed in his speech: Britain’s example will make everyone else realize that it’s not worth leaving”. Also, he added that the UK officials should understand that two-year period is not long enough for Britain to secure comprehensive trade deal with EU.

So, as we may observe both parties took rather hard stances in the negotiations. It seems that it Is going to be the toughest negotiations ever held in political history.

What will be the pound’s reaction? Will be there an additional slip in the currency’s value? Let us ask strategists from Barclays.

Barclays

Barclays’s strategists expect the invocation of Article 50 on Wednesday will initiate a “sell the rumor buy the fact” rebound in sterling from its historic lows in the longer-term as ambiguity over Brexit process recedes. A selloff of the British pound that originated after the referendum result of June 23 will probably fade away with the acceleration of the Brexit negotiation process. And GBP will regain its “fair value”. For the time being, markets have really overestimated the downside to GBP, but a number of fundamental factors such as positioning, hedging, risks to monetary policy should offer a modest support to GBP.

Overall

The majority of market participants are still betting on the further currency devaluation after the official announcement. But it shouldn’t be extreme, given the fact that the political risk of Brexit is well priced in. There might be a reversal in market’s bearish sentiment, as at the present it is so negative that it could be hard to find more sellers.

More:
https://new.fxbazooka.com/analytics/13029

 

[riki143]

Trump trade faded. Are there chances for USD recovery?
3/28/2017

The Trump trade remains on the ropes after Donald Trump failed to repeal the affordable Care Act (dubbed Obamacare). It was the first attempt of the new administration to reform the government and its miserable failure shows that Trump might not be able to deliver on his election pledges. And without expansionary fiscal policies (tax cuts and government spending on the US economic development), the US dollar doesn’t justify its recent extreme valuation.

The USD slumped to its lowest levels since November 2016 in the end of the past week. The Dollar Spot Index tumbled to 99 last seen in the last year US election time. US 10-year bond yield dropped to 2.347 from its March high (2.630) remaining in the elevated range that we saw in the middle of November.

Trump’s stimulus policies were expected to provide an additional economic boost to the US economy which would, in turn, lead to higher interest rates and a strong dollar. Now, market participants have become less certain in Trump’s ability to fulfill his pre-election pledges.

Some analysts, however, have saved their faith in Trump. They believe that it is too soon to write the USD rally off as other Trump’s legislation proposals meet less controversies in the Congress, and therefore, might be pushed through. According to them, downward pressure must ease in the near term.

The British pound and the yen can become the first two major targets for the USD to gain. The pound is seen to weaken further as soon as Theresa May triggers Article 50 and liberates the UK from its obligations before the EU.

The next victim for revenge will probably be the euro. Although EUR is currently passing through the bullish phase due to anti-EU Le Pen languishing in polls and upbeat economic figures coming out of Eurozone countries, it shouldn’t last long. As we approach the French presidential election with which many anticipate heightened political risks, the euro will likely weaken against the greenback.

The US dollar can strengthen against such risk-sensitive currencies such as AUD and NZD, especially if Trump manages to implement its border tax policy.

From all that has been said above, we may draw the following conclusion: although USD has suffered significant losses in the recent days, there are still chances for reversal in the near term.

More:
https://new.fxbazooka.com/analytics/13030

 

[riki143]

GBP/USD: bears-bulls -5:0
3/29/2017

On the GBP/USD daily chart, the bulls failed to consolidate above the 1.256 and 1.259 resistance levels. it is a signal of bulls' weakness and of the heightened risks of the transformation of the "Shark" pattern into 5-0. The pullback towards the support at 1.234 with the simultaneous return of quotes to the borders of the previous downward trading channel will be another signal of the restoration of downtrend.

On the GBP/USD hourly chart, the formation of the expanding wedge reversal pattern is almost completed. Rollbacks towards 23.6%, 38.2% and 50% levels from the 4-5 wave can be used for the opening of short positions.

Recommendations: SELL 1,2435 SL 1,249 TP1 1,234 TP2 1,225, SELL 1,247 SL 1,2525 TP 1,234.

More:
https://new.fxbazooka.com/analytics/13033

 

[riki143]

AUD/USD: aussie is dreaming of the north
3/29/2017

On the AUD/USD daily chart, the bears failed to keep quotes below the important support at 0.7605. As a result, the risks of the transformation of the junior inverted "Shark" pattern into 5-0 have increased. If this happens, the update of the March high followed by the successful test of the resistance at 0.777 will allow us to set 113% target in the "Shark" senior pattern.

On the AUD / USD hourly chart, the expanding wedge pattern has been formed. Rollbacks towards 23,6%, 38,2% and 50% levels from 4-5 wave can be used for the opening of long positions in the direction of 88.6% and 113% targets in the Shark reversal pattern.

Recommendations: BUY 0,763 SL 0,7575 TP 0,777,

BUY 0,762, SL 0,7565 TP1 0,7695 TP2 0,777.

More:
https://new.fxbazooka.com/analytics/13034

 

[riki143]

Morning brief for March 29
3/29/2017

US dollar rose rejuvenated from its ashes to live another bullish cycle. The US Dollar Spot Index jumped to 99.60. The euro, sterling, swiss franc and the yen were all lower.

The British pound experienced a sharp downfall from 1.2450 to 1.2400 after UK PM Theresa May signed the Article 50 letter before handing it to Donald Tusk, European Council President. The handwritten letter will be delivered by UK ambassador to the EU at 14:30 MT time. The event was well reported to market participants. It will unlike have significant consequences for the pound. The recent sterling’s slide was driven on the profit-taking as traders are striving to cover themselves from possible spikes in volatility. Cautious traders might consider trading the market after it settles down after the release of the news and only then you may buy GBP/USD for a brief recovery.

EUR/USD hit 1.9050 before dropping sharply to 1.0805. At the present moment, the pair is probably heading to consolidation phase even though the bears have recently flexed their muscles. The immediate support can be found at 1.0800, 1.0760. The economic calendar for the pair is light with some comments from Fed’s members to be delivered later.

The yen showed little activity in the Tokyo session. USD/JPY slipped to 111.10. On the downside, there is a sturdy support at 110.00. A break of the upper levels (111.50, 112.85) will indicate that the downward pressure has eased. For the present moment, the technical outlook for the pair is neutral. Today’s focus will on the Chicago Fed President Evans speech that should be delivered at 13:20 MT time.

Aussie edged up to 0.7660 in the Asian session probably due to surging commodity prices (iron ore in particular), as there were hardly any significant events that could start the rally. On its way to the upside, the Australian dollar may encounter several resistances at 0.7740/50. In case of a pullback, the prices may face several supports at 0.7585/1.590.

On the USD/CAD technical chart, the bullish phase is intact. The US dollar may extend its gains further towards the resistances at 1.3420, 13535 (March 9 high). A possible reversal can occur in 1.3500/1,3550 region. But the latter scenario for the present moment will unlikely realize any time soon as oil prices don’t warrant their support to loonie in the near term as the destiny of OPEC/non-OPEC production cut deal still needs to be decided. Brent oil futures revived from its recent downfall haven risen to $51.60 on the expectation that an OPEC-led output reduction will be extended for additional 5 months and on the supply disruptions in Libya. WTI futures spiked to $48.60 in the past sessions. Today’s focus will on the US crude oil inventories data. The consensus forecast favors a further surge in oil prices.

More:
https://new.fxbazooka.com/analytics/13035

 

[riki143]

Key option levels for Wednesday, March 29th
3/29/2017

ATTENTION! You can find all my next publications on FBS website, link - https://fbs.com/analytics/articles

EUR/USD

Main trend Short-term period Medium-term period
Bearish Neutral
Changes in the open interest - 71 705 ? - 40 205 ?
Closest resistance levels 1.0819; 1.0850; 1.0870; 1.0902
Closest support levels 1.0790; 1.0760; 1.0741; 1.0696
Trading recommendations
Baseline scenario Short EUR/USD below 1.0790 (or from 1.0819), with target points at 1.0760 and 1.0741
Alternative scenario Moving above 1.0819 can be considered as a signal to Buy the pair, with target at 1.0850 and 1.0870


USD/CAD

Main trend Short-term period Medium-term period
Bullish Bullish
Changes in the open interest - 24 ? - 19 ?
Closest resistance levels 1.3385; 1.3414; 1.3464; 1.3492
Closest support levels 1.3346; 1.3323; 1.3284
Trading recommendations
Baseline scenario Long USD/CAD above 1.3385 (or from 1.3346), with the target points at 1.3414 and 1.3464
Alternative scenario Moving below 1.3346 can be considered as a signal to Sell the pair, with target at 1.3323 and 1.3284


AUD/USD

Main trend Short-term period Medium-term period
Bullish Bearish
Changes in the open interest - 328 ? - 106 ?
Closest resistance levels 0.7657; 0.7681; 0.7715; 0.7757
Closest support levels 0.7623; 0.7593; 0.7567; 0.7532
Trading recommendations
Baseline scenario Long AUD/USD above 0.7657, with the target points at 0.7681 and 0.7715
Alternative scenario Moving below 0.7623 can be considered as a signal to Sell the pair, with target at 0.7593 and 0.7567

More:
https://new.fxbazooka.com/analytics/13037

 

[riki143]

Formal Brexit: one event – dozens of widely differing opinions
3/29/2017

Article 50 trigger – formal notification of Britain’s intentions to leave the European Union – is a story of the day. The Article will be invoked at 14:30 MT time. Market analysts offer various trading tips. But it’s for you to choose the most suitable one.

Some market strategists recommend not to rush into trade against the sterling and not to join the crowd of short sellers. This cohort of economists argues that prediction of GBP drop to 1.10 against the USD are designed to fill the space in the headlines. There are not based on the economic reality. A move downside is well priced in, so, as long as prices remain above the recent lows, the risk of bullish reversal is still in place. The act of Article 50 invocation could be one of those “sell the rumor, buy the fact event, that has a potential to send the pound towards 1.3000 area. Some of them say that the main focus will be not on the event itself, but on the comments accompanying the letter. The more details on future talks we get, the more confident we will be in our projections for the future path of the sterling (as additional information will partially eliminate uncertainty surrounding the future relationships between the UK and the EU27).

Another group of market analysts disagrees with their colleagues saying that it is not a proper time to become bullish on the pound. This is a so-called “crowd” for the analysts from the first group.

The third group is the group of “Machiavellian foxes” as I dubbed them. They prefer staying in the trenches until the dust settles down and only then rush into trading. They are intended to hold off for an hour or two allowing the market to digest the information, and then ride the established trend in the New York and Asian trading sessions.

More:
https://new.fxbazooka.com/analytics/13038

 

[riki143]

USD/CAD: technical levels and fundamentals
3/29/2017

General overview

In the Tokyo morning, loonie reverted its recent bullish bias and sent prices towards the sturdy support at 1.3350. In the course of the European session, the downward pressure eased and helped USD rise higher.

Fundamentals

Yesterday we heard BoC’s Governor S. Poloz speaking at Durham College. He sounded a bit dovish and cautious. Mr. Poloz noted in his speech that Canada’ economic growth prospects are still unclear to the Bank of England as Trump administration’s intentions with regard trade deal with Canada are still unknown. Although President Trump is determined to target Mexico, there is still great uncertainty over the NAFTA deal and its consequences for Canada. Also, we received some comments on the housing prices from the BoC’s Governor. It was said that recent upsurge in housing prices is not driven by fundamental demand.

USD moved higher overnight as investors have become more optimistic about the Trump’s ability to enact pro-growth policies. Fed’s speakers (George, Kaplan, and Fischer), Chair Yellen backed expectation for more US interest rate hikes and provided an additional boost for the currency overnight.

Tokyo’s revival of oil prices was positive for the loonie. Brent oil futures surged to $51.76. WTI futures were also higher in the Asian session. The optimism that an OPEC-led production deal cut will be extended took its toll. USD/CAD dropped to the important level at 1.3350 (50-H4 MA). Today’s focus will be on the US crude oil inventories data. If the release posts another buildup in US crude stockpiles, the loonie’s reaction will be negative.

Towards the end of the week, we will be waiting for US and Canadian economic growth figures coming on Thursday and Friday respectively. A strong Canadian GDP release will certainly be favorable for CAD’s valuation.

Technical levels:

USD/CAD will probably continue its roundabout movement within the Ichimoku cloud on the H4 timeframe. A break of the upper border (1.3380) will open the way towards the next immediate resistance at 1.3415. On the downside, the main supports can be found at 1.3286 (100-day MA), 1.3350 and 1.3280 (the upper border of Ichimoku cloud on the daily timeframe).

More:
https://new.fxbazooka.com/analytics/13041

 

[riki143]

EUR/USD: euro returned to the neckline
3/30/2017

On the EUR/USD daily chart, there is a struggle for the area near the neckline of the "Head and shoulders" inverted pattern. If the "bulls" manage to push quotes above 1.0775, then the pattern will be realized and we will able to count on the continuation of the rally towards 1.104. There is 161.8% target in AB = CD pattern. In contrast, the weakness of buyers can lead to the development of correction towards the current short-term uptrend.

On the EUR/USD hourly chart, the "Three Movements" pattern has been implemented. There is a high probability of transformation of the Shark pattern into 5-0. It implies a correction towards 38.2%, 50% and 61.8% levels of the CD wave, followed by the formation of the second shoulder of the "Head and Shoulders" pattern.

More:
https://new.fxbazooka.com/analytics/13043