The US NFP data for November did not lead to any significant turbulence on the market and the movements it caused were around 40-50 pips within the expected corrections of the main currency pairs.
My favourite pair, USD/JPY, which I follow very closely, formed a correction of 46 pips, but right after that the pair rebounded to test its last high at 113.589.
The last closed H1 bar reached a high at 113.587, i.e. just two ticks below the previous one.
I think we could say that we’re observing a classical double top called “Adam and Adam”. At the same time on the H1 time frame we can see a RSI divergence, which, if it reaches its limit, could lead the pair to 112.60.
Of course, it is a good idea to wait for the current H4 time frame bar to close so there will be a confirmation of the double top. Not to mention that today being Friday and the end of the market week I doubt there will be any significant movements. However, next week I expect a correction to the downside for liquidity gathering purposes and then a test of 113.90 and 114.70.
Great assessent, will keep it in mind.
ReplyDeleteThank you for the detailed analysis.
ReplyDeleteGood post!
ReplyDeleteCorrection movement after the rally.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteGood insight.
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