I have mentioned a 'hanger bar' before in my postings on the weekly chart (1.3345) which was closed yesterday. It was a perfect exit for the 4-week trade (4 price-bars) coming from the ledge entry (sell) @ 1.3574. Learn how to read chart patterns and start 'acting' instead of waiting for media news and just 'react' to their price manipulations, which are only designed to run the stops of intra-day chart traders. Price actions during news announcements may look exciting on the 1-min and 5-min charts, but have no impact whatsoever on the long-term charts. They cannot be seen. Statistics show that nearly 97% of all intra-day chart traders lose their money at the end of their time. They are the perfect pray for the market-makers and operators. Market-makers know our emotions better than we do - mainly our greed and our fears.
Yesterday investors were quick to dump the euro, driving the currency to new lows at 1.33326, but then erased all of its losses to trade back up closing at 1.33832 and form a hammer pattern and a bullish divergence.
Today we have the release of ECB interest rate decision and monetary policy. The interest rate is expected to stay unchanged and ECB may loosen even more the monetary policy.
EURUSD has been beat up for long long times . It will go up soon or at least big correction soon .But the question is how much lower it can go or how much lower traders can handle it . Now money management play important role for traders . Good luck .
EURUSD Analysis leads to a medium and long-term bearish setups. But the bullish momentum divergence (RSI) has continued to grow on the 4h charts with the latest drop. This drop also failed to clear a new daily low under yesterday’s low of 1.3332. There is an increased risk of a bullish correction here though we will not be getting long quite yet as the dominant trend (bearish) is still valid. Just a break above 1.3400 (mixed-trend), and above 1.3450 could turn the short-term trend to bullish.
EURUSD initially fell during yesterday session, but found support at roughly the same place it did during the Wednesday session and it means that EURUSD is ready to bounce. The pair will more than likely head to the 1.3450 level, and possibly even as high as the 1.3500. Expect significant selling pressure up in that region though, so this is a short-term buying opportunity at best.
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