The 4H Rectangle is being formed before further downside

23 мая 2018 г.

Following the latest analysis on EURUSD, we see two things. First that the price found support near 1.1710 and second that it was rejected near 1.1844. This adds further validity to my expectation that the current 4H candle cohesion (neutral STOCH= 50.188) resembles the November - December 2017 High Volatility zone on the same prices. As a result a Rectangle @ 1.1725 - 1.1940 is expected to emerge. Our first TP = 1.1750 has been met, and now a Lower High near 1.1940 is expected before the deeper drop near 1.1570 by June 15. Keep in mind that 1D remains heavily bearish (RSI = 25.466) and the 1W calls for 1.1408 - 1.1443 in the near future (SMA50 - SMA100).