Wave Five Down Ahead!!!
I identify a clear double ZZ(zigzag) pattern rising from the low made on November 22 of this year. There are multiple reasons to believe the move is over we are in for a downtrend.
From a momentum standpoint, we can see that the second swing-up in this move failed to exceed or even match the one of the first. The slope of the second swing is also more slanted to side, indicating a lose of buying pressure, we'd ideally like to see the price pick up momentum as we move in the second swing in a move.
For the most part, the price has moved above the trend line traced connecting the lows of the move, but we have to notice we did have a slip below for a few hours before resuming above it.
A move and close below this line at Sunday open will throw more solidity to this scenario.
Yes this pattern can also be read to be interpreted in a bullish way if we think that it might be creating a sequence of ones and twos before third move explodes up but given the trend we are traling, which is bearish, and the other factors mentioned, I lean into the bearish scenario.
Finally, the timing of this continuation down can be tricky but I believe that the volatility on Friday (likely due to NFP) nudged the price to come and take the liquidity stuck at around the 1.06315 area as highlighted by the orange circle, as well as inducing a lot of buying by breaking above those corrective levels.
All that said, nothing matter if we see price break above 1.063 which was the high set on Friday.
Hsppy Trading :)
From a momentum standpoint, we can see that the second swing-up in this move failed to exceed or even match the one of the first. The slope of the second swing is also more slanted to side, indicating a lose of buying pressure, we'd ideally like to see the price pick up momentum as we move in the second swing in a move.
For the most part, the price has moved above the trend line traced connecting the lows of the move, but we have to notice we did have a slip below for a few hours before resuming above it.
A move and close below this line at Sunday open will throw more solidity to this scenario.
Yes this pattern can also be read to be interpreted in a bullish way if we think that it might be creating a sequence of ones and twos before third move explodes up but given the trend we are traling, which is bearish, and the other factors mentioned, I lean into the bearish scenario.
Finally, the timing of this continuation down can be tricky but I believe that the volatility on Friday (likely due to NFP) nudged the price to come and take the liquidity stuck at around the 1.06315 area as highlighted by the orange circle, as well as inducing a lot of buying by breaking above those corrective levels.
All that said, nothing matter if we see price break above 1.063 which was the high set on Friday.
Hsppy Trading :)
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