hereunder is your video-analysis for the Euro FX currency futures:
The Euro respected the first setup short indicated in Yesterday’s comment in the 1.2740 area while the 1.2755 level was never violated on the upside. Thus, as anticipated, price continued its slide lower touching the first target level at 1.2670. Right now it is reacting on the upside but, in my opinion, this is only the effect of profit taking (no relevant support below price).
There are three possible scenarios going forward: 1) price keeps sliding towards the second target in the 1.2630 area, matching the important area of support located on the weekly chart; 2) price moves higher into the next traditional short setup in the 1.2700-05 area and then starts its move lower again; 3) a slightly larger correction higher into the 1.2770-80 area before resuming its move lower, but this latter scenario seems less probable at the moment.
A few traders in the social networks are anticipating the start of the next leg higher in the Euro, but it is early still. The crowd will be often wrong at this important turning points. We will need to wait for price to reach the 1.2620-30 area where participation from professionals and program trading is located. Assuming a position with a small stop in this moment is silly and would most certainly result in a loss. Better cultivate discipline and patience. There will be multiple opportunities to jump on a very profitable swing trade in the coming days, given the Euro actually starts an intermediate move higher.
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