So, as observed on my chart, we did breakout of the ascending channel we were trading in, however market did not complete the full retracement down to the 0.79 level, and reversed in what i'd call no-man's land. According to my analysis we are sat with a liquidity pool just below the previous swing low that needs to be swept before futher bullish momentum can be seen. Remember this is just MY analysis and trading plan. DYOR
US30 On the Hourly, the market bias flipped again from Bearish to Bullish.
With the rally, if the bulls cannot breach the Swing High with a candle close at 42,137 or higher, then back down it goes. Based on the distance of the highs of the last three candles, narrowing down, the bullish momentum looks like it's waning for a retracement.
The bearish retracement can either be shallow or drop more to return to its mean (average) around 41,896.
As long as price action is still in Bullish (directional) Market Bias on the Hourly, then after the retracement, the rally can resume.
US30 Looking at the Daily, the rally is weak. How to tell? For a bullish thrust, look at the previous candle (colored with a yellow marker). It did not close higher than the previous candle and is a high wave candle too. That's the first sign. And their long lower wicks of the current and previous candle are a show of initial, strong bearish moves.
Watch to see if the current, bullish candle forming can close above the high of the previous candle (at 42,138) for a continuation of the bullish thrust by the end of the New York session. If not, you're more likely to see the bears step in tomorrow to show themselves.
US30 I will explain my setup...
