EUR/USD Outlook
After 2 days of hesitation between 3050 and 3140 without any major moves towards 3000 level, the only thing that is evident right now is a 23.6 retracement of the entire rise from 2742 and a "Energy Circle" being formed after todays drop to 3034. The 23.6 retracment usually happens when impulse waves are in their initial phases of development, which in this case it implies for now thats all we are going to get as far as down move is concerned.
The 2990 level is the 38.2 retracemtn of the mentioned move, but for now because the "Energy Circle" is there, it implies that a stronger thrust is in the process of development.
The typical behaviour that we want to see now is for price action to start climbing inside the T1 trendline in a space in between the T1 and T2 trendlines. We are looking for a gradual rise towards 3150 level, with a strong spike when we reach that level towards the lows of 3300 zone. This will make the movement from 2742 a 3 sectional move and complete the uptrend cycle that has started from 2742.
For today I would rather wait a bit longer till 10:30-10:45 to see what happens, since we are at the end of the week, I would not expect any major moves to happen, maybe some consolidation between 3070 and 3100
After 2 days of hesitation between 3050 and 3140 without any major moves towards 3000 level, the only thing that is evident right now is a 23.6 retracement of the entire rise from 2742 and a "Energy Circle" being formed after todays drop to 3034. The 23.6 retracment usually happens when impulse waves are in their initial phases of development, which in this case it implies for now thats all we are going to get as far as down move is concerned.
The 2990 level is the 38.2 retracemtn of the mentioned move, but for now because the "Energy Circle" is there, it implies that a stronger thrust is in the process of development.
The typical behaviour that we want to see now is for price action to start climbing inside the T1 trendline in a space in between the T1 and T2 trendlines. We are looking for a gradual rise towards 3150 level, with a strong spike when we reach that level towards the lows of 3300 zone. This will make the movement from 2742 a 3 sectional move and complete the uptrend cycle that has started from 2742.
For today I would rather wait a bit longer till 10:30-10:45 to see what happens, since we are at the end of the week, I would not expect any major moves to happen, maybe some consolidation between 3070 and 3100