Sunday evening I published the same chart predicting the target would be reached within 16 days, like a previous period. It did within one day! This indicates which crazy volatility we have at the moment.
Cleaned it up a bit and what's next?
I am still bullish about the EURUSD. Markets do bounce a little today. (dead cat bounce?)
Keep in mind that we can go back at 1.13 and even 1.10 for EURUSD, fib support and maybe a bounce off the 200 SMA.
I wouldn't be surprised that more is coming to the downside in markets worldwide. Technically we can go much deeper and the fundamentals are very different compared to oct 2014
When there comes another massive sell off, be cautious. Everything is going to be dragged with it to the south! Look back at 2008 and 2010.
About my technical look at the market
I do use MA's, the fib tool and Stochastics for momentum/divergence. But it isn't exact science and it is never be a trade off individually. There must be confluence, some logical sense to it. I don't believe in the "magical" 61.8 levels, although it does come out as a self fulfilling prophecy accurate to the tick because many people or algorithms watching these levels. But it is nothing more than a simple percentage measure tool.
I look for dynamic S/R on MA's. Be cautious with MA's! Depending on the datafeed you have, longer term MA's do differ. As example, yesterday on one of my MT4 brokers the EURUSD at its highest point bounced off the 300 SMA on the daily chart. That was a I sign for me to pull the plug on the algo I had running that was compounding on small long positions. I have the 300 SMA on this TV chart too and it doesn't come near.. Also the 200 SMA is very different.
Cleaned it up a bit and what's next?
I am still bullish about the EURUSD. Markets do bounce a little today. (dead cat bounce?)
Keep in mind that we can go back at 1.13 and even 1.10 for EURUSD, fib support and maybe a bounce off the 200 SMA.
I wouldn't be surprised that more is coming to the downside in markets worldwide. Technically we can go much deeper and the fundamentals are very different compared to oct 2014
When there comes another massive sell off, be cautious. Everything is going to be dragged with it to the south! Look back at 2008 and 2010.
About my technical look at the market
I do use MA's, the fib tool and Stochastics for momentum/divergence. But it isn't exact science and it is never be a trade off individually. There must be confluence, some logical sense to it. I don't believe in the "magical" 61.8 levels, although it does come out as a self fulfilling prophecy accurate to the tick because many people or algorithms watching these levels. But it is nothing more than a simple percentage measure tool.
I look for dynamic S/R on MA's. Be cautious with MA's! Depending on the datafeed you have, longer term MA's do differ. As example, yesterday on one of my MT4 brokers the EURUSD at its highest point bounced off the 300 SMA on the daily chart. That was a I sign for me to pull the plug on the algo I had running that was compounding on small long positions. I have the 300 SMA on this TV chart too and it doesn't come near.. Also the 200 SMA is very different.
