Euro Analysis

I am very sorry for such a very late update today. Coming up to Christmas it has been a little hectic.

I have done an analysis for a friend of mine who I had spoke with this morning and I thought you might also find it useful.

The weekly chart shows a reversal candle at the figure with divergence.



The daily chart also shows a reversal candle at the figure with divergence . Nine days later we have a hammer reversal at a fib level and as you can see the Euro has rallied.



Two schools of thought here.
1. We are heading up from a reversal at a fib level which is a continuation.
2. This is nothing more than a breather before we contiue the downtrend.

At this moment either of the above could be right. To identify which it could be we need more confluence of events and right now we don't have them. As and when they start to appear we need to take not of them and put the odds in our favour prior to taking a direction. To give away one such strategy, take the high to the low and wait for the price to hit a fib reversal level (if it goes that high). If a level is hit with a reversal candle then you have a confluence. The odds are beginning to be in favour of a short position now. However, if those level are breached then wait for a break and close above the high for continued strength. This is where a good entry stop loss needs to be placed. To do this look down the time frames to something lower.

The above chart are all courtesy of Advanced Get which if you do not already own it you can read more about by clicking here.


Forex Team
Anne Chapman & Javid Shaik