hereunder is you video-analysis for the Euro FX currency futures:
with price violating the 1.2926 level on the downside we had further confirmation of the validity of the downwards move started Wednesday at the 1.3020 area. That resistance area and short setup has a first target right into the 1.2830, a very important area of support.
In the past the 1.2820-30 area has been sustained by participants because it relates to a very important retracement that can be identified on the weekly chart. However, we will need to verify whether price is going to respect this area once again and a significant rebound will take place. Such action would require participation from professionals and program trading at an area that is going to be tested for the second time.
As we know, second tests are always very dangerous because we need a brand new group of traders taking the place of those who sustained price for the first time. Therefore there is a tangible risk that price will continue on the downside and this weekend I will elaborate and expand on the plan published last week whose broad outline remains still valid.
Thus two scenarios must be kept in mind: 1) price bounces from the 1.2820-30 area and moves above the 1.2950 level, starting the next intermediate leg higher in the Euro; 2) price moves below the 1.2820 area and continues towards the next , and last, level of support in the the 1.2630 area.
Later on I will post the updates for trades and performance related to last few days of activity.
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