Here below please find attached the video-analysis of the Euro FX currency futures and the Dollar Index I recorded earlier in the morning today June the 6th (before the huge move higher):
Hereunder is the up to date chart and explanation for the Euro FX currency futures (only)
Those who followed my previous post are aware of the chart and explanations I gave on May 31st and know that I have exited shorts at the 1.3078-80 level. Today’s price move showed why it was important to exit ath the 1.3078-80 level. I wrote that a second test of the 1.3240 area was possible and indeed a very dangerous one, because we could not know in any way if bears would be willing to keep pushing prices lower. Today’s price action showed that bears did not step in to defend their shorts and price printed relative higher highs, piercing well into that area of short selling starting at the 1.3240 level.
Today’s move higher also confirmed – according to Down definition of trend – a new upwards trend with price structure now showing higher lows and higher highs. I anticipate a break of the 1.3355 level on the upside and then a correction where daily longs will want to take a position and weekly bulls (already long at lows in april and mid-end of May) will want to add to their current positions.
My two scenarios going forward (please reference the above picture):
Scenario 1. Price slices throughtout the 1.3221 level and a more profound correction takes place into teh 1.3190 area of support. A low risk long trade could be initiated there with a stop below 1.3155.
Scenario 2. We get a very shallow correction and price stays above the 1.3221 level and just continues higher towards the 1.3356 level of failure of weekly shorts.
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