Monday’s expectation was that the trend would continue down. Whilst price was below all higher timeframe 50% levels and the 3-day SELL cycle, the trend remained bearish.
But often we see lower weekly ‘opens’ try and rotate upwards back towards the Weekly 50% level before resuming the downward trend. But in this case, price moved back above the 3-day high, changing the cycle once again.
Index trading, I would look for a re-test 3-day breakout. Because whenever price breakouts and changes the cycle, it normally swings back down. Lower daily close followed by a lower daily open to verify the break. (support)
If that occurs on Tuesday, then the daily timeframe has a random length, price would be below all higher timeframe 50% levels on Tuesday, and a 2-day stall can take price back down towards the lower channels once again.
Currency markets aren’t a regressive as index markets; they like to spend more time in trending patterns, therefore Tuesday trading is going to be defined by the Weekly 50% level @ 2.0436 and the 3-day cycle.
Overall Trend is defined by the December 50% level.
But often we see lower weekly ‘opens’ try and rotate upwards back towards the Weekly 50% level before resuming the downward trend. But in this case, price moved back above the 3-day high, changing the cycle once again.
Index trading, I would look for a re-test 3-day breakout. Because whenever price breakouts and changes the cycle, it normally swings back down. Lower daily close followed by a lower daily open to verify the break. (support)
If that occurs on Tuesday, then the daily timeframe has a random length, price would be below all higher timeframe 50% levels on Tuesday, and a 2-day stall can take price back down towards the lower channels once again.
Currency markets aren’t a regressive as index markets; they like to spend more time in trending patterns, therefore Tuesday trading is going to be defined by the Weekly 50% level @ 2.0436 and the 3-day cycle.
Overall Trend is defined by the December 50% level.
Posts
