Recap Double fun with euro last week. 1.39 cleared early in the week, gave us a 100% absolute range expansion to right below 1.4 hard resistance which is also the upside target mentioned last week. Then we get the normal reaction from the resistance. Normal reaction turns into all out collapse when Y+1 was breached. Closed the week below Y-1 and near week low.
Outlook The move to 1.4 was necessary to clean out the remaining shorts to stage the next long term down trend.
If this is the swing top of the year, we will see wild swings this coming week to fight the turn, as long as Y+1 is not breached, more downside is expected.
Lawrence's Comment
Recap
Dow extended its losses early in the week with wedging actions gave us a clue that this could be an FBO against Y-1. Confirmed by Wednesday with a very ...
Lawrence's Comment
Recap
As expected more downside to Y-2 before a bounce. Failed to clear Y-1 leading to extended slide down to Y-3 normal expansion target. Closed the week below Y-2 and ...
EURUSD May 12 to May 16 Outlook
Lawrence’s Comment
Double fun with euro last week. 1.39 cleared early in the week, gave us a 100% absolute range expansion to right below 1.4 hard resistance which is also the upside target mentioned last week. Then we get the normal reaction from the resistance. Normal reaction turns into all out collapse when Y+1 was breached. Closed the week below Y-1 and near week low.
Outlook
The move to 1.4 was necessary to clean out the remaining shorts to stage the next long term down trend.
If this is the swing top of the year, we will see wild swings this coming week to fight the turn, as long as Y+1 is not breached, more downside is expected.
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