EUR/USD Daily and 5-day pattern chartTwo 2 days ago I was looking for a rotation back towards the Weekly 50% level.
Whenever the Weekly timeframe opens higher, the expectation is a 2-day pullback into the Trailing support levels.
If the Euro is going to continue higher then the expectation is that the Weekly 50% level should hold, but probably won't continue higher until next week, when prices rise upwards off the June 50% level and continues towards June's high.
Day trading:- A break of the 5-day lows, and expectation price will normally move towards the 5-day lows in the next day....
Two plays.....
A:- pushes up early on Thursday and continues down into the 5-day lows on Thursday...
B:- remains below Wednesday's 5-day breakout and continues down into the 5-day lows, before swinging back towards the 5-day 50% level....
Next two days I'm expecting a 2-day sideways move and then define the next stage of the trend from the month of June .
Don't short trade the break of Thursday's 3-day high :- A test of the Weekly 50% level in the first 3-days of the Week can often see buying come back in. Even though i'm factoring in two days of sideways price action until the end of the month, trader's shouldn't fight the trend after a bounce off the Weekly 50% level.
Note:- Bearish pattern would be a continuation down into the 5-day lows on Thursday, and then Friday continues down into a lower Weekly close, as previously mentioned on the 26th May.
This pattern could then have a rejection sell-off next week from the June 50% level, but at this stage that's not part of the overall view. If that starts to play out it won't be until next week....
