EURUSD Top-Down Analysis
Hello Traders,
Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price has downward move supported by a downward resistance line. We can see two W patterns and this provides us two targets to the downside. Both targets are near 0.382 and 0.618 Fib levels on last monthly bullish impulse.
W > We saw deceleration of price for 7 weeks before it dropped couple of weeks ago. Price however moved up again to be in range created during deceleration.
D > Deceleration found support with an upward support trend line and its break gave us bearish confirmation. Price returned back to test trend line as resistance and started downward move. Price is now testing daily supply zone.
As per COT EUR saw closure of Long and addition of Short for the 2nd time in a row, reducing net positions. EXY however improved its position for the said week because we saw reduction in overall open interest, it did not allow its position to slip. EXY was weak last week.
Does closure of Long and addition of Short for two consecutive week suggest any direction? Answer is NO, not as off now. Overall EUR has huge quantum of net positions for past 2 quarters, with much more open Long positions than Short., 35% vs 9% for non-commercials. Institutions can sway market either way in short term with few addition or closure Long/ Short positions till the time they hold their strong Long positions. EUR will continue to be strong unless we see major Short positions added for Institutions. Hence for all EUR pairs it is recommended to follow only short term trend with good risk management.
4H > Price moved up to test support trend line and is now dropping creating LH and LL. Break of daily supply zone will provide us another bearish confirmation.
We continue to have bearish target but due to positions held by Institutions we strongly recommend proper price management while entering short.
Pair Correlation > EURUSD has positive correlation with XAGUSD, EURJPY, AUDCAD, CHFJPY and AUDUSD and negative correlation with USDCHF.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price has downward move supported by a downward resistance line. We can see two W patterns and this provides us two targets to the downside. Both targets are near 0.382 and 0.618 Fib levels on last monthly bullish impulse.
W > We saw deceleration of price for 7 weeks before it dropped couple of weeks ago. Price however moved up again to be in range created during deceleration.
D > Deceleration found support with an upward support trend line and its break gave us bearish confirmation. Price returned back to test trend line as resistance and started downward move. Price is now testing daily supply zone.
As per COT EUR saw closure of Long and addition of Short for the 2nd time in a row, reducing net positions. EXY however improved its position for the said week because we saw reduction in overall open interest, it did not allow its position to slip. EXY was weak last week.
Does closure of Long and addition of Short for two consecutive week suggest any direction? Answer is NO, not as off now. Overall EUR has huge quantum of net positions for past 2 quarters, with much more open Long positions than Short., 35% vs 9% for non-commercials. Institutions can sway market either way in short term with few addition or closure Long/ Short positions till the time they hold their strong Long positions. EUR will continue to be strong unless we see major Short positions added for Institutions. Hence for all EUR pairs it is recommended to follow only short term trend with good risk management.
4H > Price moved up to test support trend line and is now dropping creating LH and LL. Break of daily supply zone will provide us another bearish confirmation.
We continue to have bearish target but due to positions held by Institutions we strongly recommend proper price management while entering short.
Pair Correlation > EURUSD has positive correlation with XAGUSD, EURJPY, AUDCAD, CHFJPY and AUDUSD and negative correlation with USDCHF.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.