AUD Weekly and 5-day patternAUD has followed the Weekly HOOK pattern rising up from the Weekly 50% levels and 5-day 50% levels....
However, after completing the 85 pip move and hitting the 3-day cycle high (white) price has reversed back down.
A Weekly HOOK pattern should continue to be supported above the 5-day 50% level on Thursday, but the failure to close above the 3-day cycle could see a choppy trading day either side of the 5-day 50% level.
Because of this is there is no probability pattern on Thursday.....
Euro Weekly and 5-day pattern"We have a 5-day breakout on Tuesday, therefore there is the expectation that price should continue towards Wednesday's highs.
However, Tuesday is breaking the 3-day cycle (White)
However, Tuesday is breaking the 3-day cycle (White)
When that happens often price stalls for 2-days and then continues higher on the 3rd day.
Basically I would like to see the Euro move back down towards the 3-day filter (Red) over the next 1-2 days to trade longs towards a higher Friday close" ......Yesterday's Report
Euro on Wednesday played out precisely, except it didn't precisely hit the Wednesday's highs, failing my entry by 2 pips.
In any normal 5-day breakout as was the case on Tuesday, we would normally think that price will remain above the break and the 5-day 50% level would support price.
That normally happens if price is rising up from the 3-day filter on Tuesday (red), but that wasn't the case.
Instead the view is for price to come back down and retest the filter, which it did, along with Weekly 50% level support.
Now does the Euro continue towards Friday's highs?
Based on the 5-day pattern and Thursday trading below 5-day 50% level, it makes it hard to be confident that the Euro will move higher:- Weekly 50% level support.
We might get another 1-day consolidation until the 3-day filter drops from Thursday's highs into lower prices on Friday.
No probability pattern on Thursday because of where price is trading to the 5-day 50% level, at this stage
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
