Not Certain why… solely a handful of you learn the primary one.
Let’s have a look EURUSD on a 4HR chart.
It is a bare chart with solely a fib of our final down transfer and a development line.
Does the EURO have sufficient vitality to make it to the 50 stage? (Close to the highly effective psych stage of .5800.)
I am guessing sure.
Nonetheless… if it does… will it have sufficient vitality to make it previous three obstacles which can be creating robust bearish confluence?
NO WAY…. UNLESS NFP paints extra horribly than estimated.
What are they:
1) .5800 stage. Something ending in 00 are a very powerful psych ranges.
2) %50 fib stage of present down leg.
3) Pattern line from current highs
Ought to these three ranges drawn shut to 1 one other the confluence (I like that phrase) of the three will severely deter the bulls.
Previous to the European session I will put up doable commerce set ups based mostly on this strategy to buying and selling.