From the latest EURFX COT report we can see that there is an increase in the short contracts since last week. Till last week we were at record numbers for long contract positions, so a change in the direction is very likely to happen soon.
Now: The price tried to break above the monthly critical area.
There are 2 scenarios:
1. The most likely one to happen is to see a downside move towards the 1.12232 mark. Critical zones to watch out for are the 1.12863 where we can see a sup/res zone + the 0.5 Fibonacci retracement and the second trendline as well. A good entry may be the neckline at the 1.13050 mark. It will also confirm the final stage of the current 1h “M” formation.
2. If the price goes above the highs from yesterday a move towards the upper highs of the monthly critical is a possibility.
Happy Trading!
Now: The price tried to break above the monthly critical area.
There are 2 scenarios:
1. The most likely one to happen is to see a downside move towards the 1.12232 mark. Critical zones to watch out for are the 1.12863 where we can see a sup/res zone + the 0.5 Fibonacci retracement and the second trendline as well. A good entry may be the neckline at the 1.13050 mark. It will also confirm the final stage of the current 1h “M” formation.
2. If the price goes above the highs from yesterday a move towards the upper highs of the monthly critical is a possibility.
Happy Trading!