Today is the end of the trading week and in a few hours the market will close, but the situation on the H4 time frame is a serious warning that there will be a trend reversal. That would mean a likely closing of the 180 pips gap that formed on Monday after the presidential elections in France.
To confirm this expectation I’d like to point out that the pair has reached a strong resistance on the D1 and W1 time frames and another rally would be difficult without a correction.
Regarding my expectation about what is the target of that correction, considering the divergences, I would say that the main target on the way down is 1.40860, together with several closer ones at 1.41965, 1.41766 and 1.41176.
If the pair reaches the target at 1.40860, the gap that began from 1.42097 will definitely be closed. So all that remains is to wait and see how the pair will develop next week.
That's good to know, thank you.
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteGreat post!
ReplyDeleteVery nice tip I'll keep a close eye on the currency pair.
ReplyDeleteGood post!
ReplyDeleteGood analysis.
ReplyDeleteInteresting levels to be watchful of, thanks for the info.
ReplyDeleteGreat post! I fully agree with your view.
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