EURUSD, still bullish.
Updated
Today was quite the risk off first half of the day with USD, JPY surging and EUR, AUD, NZD falling. Markets continued to rally though. After forming a nice H&S pattern at the top of wave 3, EURUSD went into a correction wave 4 in an ABC formation, which went by the book: no more than 50% retracement and not getting into the territory of wave 1. Additional long position at wave 4, stop below 1.16800, target wave 5. Forming a spinning top candle with a long lower wick showed buying pressure and now momentum is on the upside again, going for impulsive wave 5 higher than 18.5 level at least 1.618 Fibonacci expansion of wave 1-2. So far technicals are holding nicely.
Happy Trading!
Happy Trading!
Note
US announced 200bn preparation for extra tariffs on Chinese goods!Note
Note
Trump strikes again! Yesterday with a good completion of a corrective 4th wave (a-b-c sub-wave), EURUSD started sub-wave 1 which topped at the 50 SMA after 2 doji candles and one shooting star. Then news regarding $200 billion tariffs against China came out. Immediate risk off mood: USD, JPY buying, AUD, NZD selling. Even if the move was fundamental, psychology in market still holds. Making a low for sub-wave 2, but not retracing fully to the start of sub-wave 1. Now after ECB announcement about future rate hikes (cabinet split on when to do it), EUR surged and accordingly we are continuing with wave 5 (sub-wave 3). Wave analysis still holds and pair looks bullish as long as the lows are not broken.
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