Like it or not, for E$, most reversals were preceded by either a bullish/bearish engulfing or dark cloud cover/piercing candlestick patterns (see chart). After studying the intraday price action and confirmed by a daily dark cloud cover candlestick pattern, the probability of E$'s recent rally hitting a wall has definitely increased (nothing is certain in the financial market!) However, as we slip into the daily Ichimoku cloud, we must be mentally prepared for some back and forth price action until we break free below the 1.3100 big figure where we then have to contend with the bunch of daily moving averages (DMA200/50: 1.3079, DMA 21: 1.3047 and DMA100: 1.3027).
No updates on the order book today.
Primary trend: Bullish
Intermediate trend: Bearish for 1.2800/50
Minor trend: Mildly bearish
Technically, shorter intraday indicator has come off its o/b zone but the longer intraday and daily indicators are only just starting. Upside momentum has waned and downside momentum is building up.
Expected range 1.3230/40 to 1.3100/20 (expanded 1.3060/80).
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| E$ Daily chart - Reversals |
Read my update "Are we done yet?", 24 Jul 13, for AUDUSD view.
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