Curso de Trading do Brooks

Aprenda a operar price action consistentemente

 

More results...

Weekly EURUSD Micro Wedge

By

Market Overview: EURUSD Forex

The market formed a weekly EURUSD micro wedge around the November 6 high. The bears must create strong follow-through selling to increase the odds of a deep pullback. The bulls want any pullback weak and sideways (overlapping candlesticks, doji(s), bull bars).

EURUSD Forex market

The Weekly EURUSD chart

EURUSD Weekly - Micro Wedge, Bears Need FT, Weekly EURUSD Micro Wedge
  • This week’s candlestick on the weekly EURUSD Forex chart was an outside bear bar closing near its low with a long tail above.
  • Last week, we said traders would see if the bulls could create more follow-through buying or if the market would stall around the November 6 high area instead.
  • The market traded slightly higher but stalled around the November 6 area and reversed into an outside bear bar.
  • Previously, the bulls got a failed breakout below the trading range, forming a strong spike up testing the middle of the trading range and the November 6 high.
  • They hope the bull leg to retest the top of the trading range (Aug/Sep highs) is underway.
  • If the market trades lower, they expect to get at least a small sideways to up leg to retest the current leg extreme high (Mar 18).
  • They want any pullback weak and sideways (overlapping candlesticks, doji(s), bull bars).
  • The bears hope the market will stall around the middle of the trading range and form a lower high.
  • They see the recent move as a buy vacuum and a bull leg within the trading range.
  • They want the middle of the trading range, or the November 6 high to act as resistance. So far, this is the case.
  • They want a reversal from a micro wedge pattern (Mar 7, Mar 11, and Mar 18).
  • They hope to get a retest of the 20-week EMA or the breakout point (Jan 27).
  • They must create strong follow-through selling to increase the odds of a deep pullback.
  • Since this week’s candlestick is an outside bear bar closing near its low, it is a sell signal bar for next week.
  • The long tail above the recent candlesticks indicates profit-taking activity around the November 6 high area.
  • As strong as the recent move is, it could still be a bull leg and a buy vacuum within the trading range.
  • For now, the market may trade at least a little lower.
  • Traders will see if the bears can create a strong follow-through bear bar.
  • Or will the market trade slightly lower but close with a long tail below or with a bull body instead?
  • The market is trading around the middle of the trading range which is an area of balance and a magnet.
  • Traders will BLSH (Buy Low, Sell High) within the trading range until there is a breakout from either direction with sustained follow buying/selling.
  • That means buying in the lower third and selling in the upper third of the trading range.

The Daily EURUSD chart

EURUSD Daily - Bears Want PB, Bulls Want 2nd Leg Up
  • The EURUSD traded higher early in the week but formed a pullback from midweek onward.
  • Last week, we said traders would see if the bulls could continue to create more follow-through buying trading above the November 6 high, or if the market would stall around the November 6 high area followed by a deeper pullback instead.
  • The bulls got a strong bull leg within the trading range.
  • They hope the move to retest the top of the trading range is now underway.
  • If there is a deeper pullback, the bulls expect at least a small sideways to up leg to retest the current leg extreme high (Mar 18).
  • They want the 20-day EMA to act as support.
  • The bears see the current move as a buy vacuum and a bull leg within the trading range.
  • They hope the middle of the trading range or the November 6 high will act as resistance.
  • They want a reversal from a wedge pattern (Mar 7, Mar 11, and Mar 18) and a lower high.
  • They must create more follow-through selling closing below the 20-day EMA to increase the odds of a deeper pullback.
  • If the market trades higher, they want it to form a lower high (to Mar 18) followed by a reversal from a lower high major trend reversal.
  • So far, the market has traded sideways around the November 6 high area in the last 12 trading days.
  • As strong as the recent move was, it could still be a bull leg and a buy vacuum within the trading range.
  • The move up is strong enough for traders to expect at least a small sideways to up leg after the current pullback (even if it only forms a lower high).
  • For now, traders will see if the bears can create more follow-through selling trading below the 20-day EMA.
  • Or will the market trade slightly lower but stall around the 20-day EMA area instead?
  • The market is trading around the middle of the trading range which is an area of balance.
  • Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction with sustained follow-through buying/selling.
  • That means buying in the lower third and selling in the upper third of the large trading range.

Market analysis reports archive

You can access all weekend reports on the Market Analysis page.

>