It's abnormal for a candle with an exceedingly large range to continue moving up without first retracing. Note: I am not saying it is impossible but only that it is abnormal. Anything can happen, of course. Especially in today's market, which has apparently gone mad!
Please keep in mind that the Average Weekly Range for a period of 24 is 115 pips. The current Weekly candle's range is at 249 pips! That is more than double the amount of the AWR!
Considering these details, how could we not see a retracement soon?
It is possible EURUSD can continue to move up somewhere between the 61.8 and 78.6 fib levels, that is, 1.1063 - 1.1137. But I would think that we should see a decent retracement before that happens. Perhaps all the way down to or near the top blue line on the image at 1.09345.
But let's suppose it just keeps going up like a rocket, it's only about 42 pips away from the Average Monthly Range at 1.1066. If it gets to this point without retracing, I don't think it will have much fuel left in the tank to continue on its upward path for much longer before coming back down to earth.
I know there are people out there who don't like to hear about volume, but I have to mention it, because I feel it is important. Feel free to close your eyes at this point or look away.
The last volume bar on the Weekly is abnormally large, and is therefore, indicative of a soon coming retracement.
Just my two cents.
Please keep in mind that the Average Weekly Range for a period of 24 is 115 pips. The current Weekly candle's range is at 249 pips! That is more than double the amount of the AWR!
Considering these details, how could we not see a retracement soon?
It is possible EURUSD can continue to move up somewhere between the 61.8 and 78.6 fib levels, that is, 1.1063 - 1.1137. But I would think that we should see a decent retracement before that happens. Perhaps all the way down to or near the top blue line on the image at 1.09345.
But let's suppose it just keeps going up like a rocket, it's only about 42 pips away from the Average Monthly Range at 1.1066. If it gets to this point without retracing, I don't think it will have much fuel left in the tank to continue on its upward path for much longer before coming back down to earth.
I know there are people out there who don't like to hear about volume, but I have to mention it, because I feel it is important. Feel free to close your eyes at this point or look away.
The last volume bar on the Weekly is abnormally large, and is therefore, indicative of a soon coming retracement.
Just my two cents.
You don't know because you don't ask.
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