Previous week low tagged first as expected. Then previous month close acted as resistance, and run down to the target of previous month low – standard STOPD move.
Next week outlook
The more profitable, but lower probability setup is the potential w. spring against the previous month low. That will work out if the previous month low (red zone) turns into support and shoot the pair to previous month close + 50% area (yellow zone). Depending on the momentum and how yellow zone is taken out then, green zone will also be in play.
The higher probability setup for the week, however, is a tight range week after the directional drop last week, keeping the range to stay within the red zone and yellow zone.
Lawrence's Comment
Recap
Euro did the whiplash move after FBO against the resistance zone mentioned last time. Euro dropped quickly but 1.34 round number somehow provided support. Euro drifted back up since. ...
EURUSD Week of Nov 15th to 19th Outlook
Recap of last week
Previous week low tagged first as expected. Then previous month close acted as resistance, and run down to the target of previous month low – standard STOPD move.
Next week outlook
The more profitable, but lower probability setup is the potential w. spring against the previous month low. That will work out if the previous month low (red zone) turns into support and shoot the pair to previous month close + 50% area (yellow zone). Depending on the momentum and how yellow zone is taken out then, green zone will also be in play.
The higher probability setup for the week, however, is a tight range week after the directional drop last week, keeping the range to stay within the red zone and yellow zone.
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