Since last writing it looked like I had misinterpreted the patterns & signals for most of Jun but then on the very last day – last Friday, it all came good!
This has led to the Weekly Chart for EUR/USD having not only Two Bearish Black Crows so far but also most recently a closing Bearish Black Marubozo. As I mentioned last time ‘…overhead we have a band of resistance which on paper may be good between 0.7793 – 0.7847…’. Guess what? The high was – 0.7748 – that makes me happy!
Then I asked ‘…it will be interesting to watch what will happen if we go below 0.7600!’ and though we didn’t do much the first time last Monday, the move last Friday was all about that level – it now becomes resistance along with 0.7530, 0.7550, 0.7584, 0.7642 & 0.7700. Support is at 0.7489 (dynamic), 0.7449. 0.7325, 0.7248 (dynamic) & the still key 2001-to-date Uptrend currently at 0.7146.
As a final element to the lower market argument, during Jun – on the 8th of Jun in actuality – we had a Bearish Bow Tie Formation of the Short, Short/Medium & Medium MAs. The action kicks in between 15 – 20 business days thereafter… or between the 29th of Jun & the 3rd of Jul… that’s what we saw Friday as well. With all this in play, I have taken off the question mark & placed the bullet point above into full bearish.
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