Yellow zones- critical zones based on the monthly/weekly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
After last week’s COT Report we can notice a big and rapid increase in the “long” contract sizes. On the other hand, JPY is showing dominance on the “short” contract sizes.
After price got rejected last week from the 4H critical zone near the 120.300 area, we saw a break through the daily and the next 4h critical zone above the 122.00 area.
Since the EUR is in a strong position, we can expect an attempt towards the 124.000 mark. No strong correction can be expected before that. Afterwards a correction towards the trendline near the 122.000 area may happen and a continuation towards the 115.00 if the EUR shows any signs of weakness in the next couple of COT report, since a possible formation of a “M” structure may be on its way.
A strong close above the 122.500 area would be a good confirmation for a move towards the previous highs near the 124.00 area.
Happy Trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
After last week’s COT Report we can notice a big and rapid increase in the “long” contract sizes. On the other hand, JPY is showing dominance on the “short” contract sizes.
After price got rejected last week from the 4H critical zone near the 120.300 area, we saw a break through the daily and the next 4h critical zone above the 122.00 area.
Since the EUR is in a strong position, we can expect an attempt towards the 124.000 mark. No strong correction can be expected before that. Afterwards a correction towards the trendline near the 122.000 area may happen and a continuation towards the 115.00 if the EUR shows any signs of weakness in the next couple of COT report, since a possible formation of a “M” structure may be on its way.
A strong close above the 122.500 area would be a good confirmation for a move towards the previous highs near the 124.00 area.
Happy Trading!