Expectation of higher prices into the Weekly highs, but once those higher prices are reached the expectation of a reversal back down into the July 50% level.....
Previous Weekly Report
EURO Weekly and daily charts
Euro moved up into the Weekly highs and has reversed back down into July's 50% level finding support.
In an UP trending market, there is an expectation that a lower Weekly close into higher timeframe 50% levels can begin a 'thrust' pattern Upwards, as prices rise up from a lower Weekly open next week.
A lower weekly close verifies support, and a lower weekly open rising upwards is confirming the trend within this currently monthly timeframe.
If that is the case then my expectation is prices are moving towards 1.6034, over the next 3 weeks.
Euro 3-day filter
For day traders, as long as we're trading on the side of the 3-day filter and 5-day 50% level, and along with understanding the price action within the higher timeframes, then over the next 3-week, the expectation is to optimise trades to the BUY side.
Trading shorts intra-day will still play an important part of day-trading the Euro, but if the market is heading upwards, it's probably best to focus on the long side.
If Euro breaks the July 50% level, and is trading below the Weekly 50% level, then traders can switch and optimise the trades on the short side, as prices rotate back down towards 1.5281.
But at this stage that's not part of my overall view just yet.
- All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT
