Hello, previous week was volatile in Forex market. In first half of the week it seemed that euro will continue to wane, but on the 1st of July everything changed.
In the middle of the week euro - yen reached its new low at 107.32 and bounced, forming a morning star pattern. The most interesting thing is, that this is the third low in a row of Eur-Jpy price lows. These lows diverge with indicator MACD - price lows goes down, and indicator lows goes up. I checked them with green arrows. Sum of these events show us, that euro - yen is ready to take off and reach the 120.00 level. So for next week I expect price to reach 113.50 in first days. And if price breaks through this level, it may continue climbing up towards 120.00. But if it fails, we can see the 4th low :)
In the middle of the week euro - yen reached its new low at 107.32 and bounced, forming a morning star pattern. The most interesting thing is, that this is the third low in a row of Eur-Jpy price lows. These lows diverge with indicator MACD - price lows goes down, and indicator lows goes up. I checked them with green arrows. Sum of these events show us, that euro - yen is ready to take off and reach the 120.00 level. So for next week I expect price to reach 113.50 in first days. And if price breaks through this level, it may continue climbing up towards 120.00. But if it fails, we can see the 4th low :)
Like euro - yen, euro - dollar also suddenly changed its direction. Currently at daily chart we see a chart formation similar to Head and Shoulders pattern with yellow neckline, which diverges with MACD as it should be (I also checked divergence with green arrows). But here can lie the another Head and Shoulders pattern, which currently does not have second shoulder and its neckline coincide with dashed green line at price level 1.26. So for next week I see two options:
1. In first days price retraces to a yellow neckline and continues rising towards 1.325 (white arrows).
2. Price retraces deeper - till 1.215, then increasing to 1.26 and forming a second shoulder. When pattern formation ends, most likely price will climb up to a 1.325 level (blue arrows).
1. In first days price retraces to a yellow neckline and continues rising towards 1.325 (white arrows).
2. Price retraces deeper - till 1.215, then increasing to 1.26 and forming a second shoulder. When pattern formation ends, most likely price will climb up to a 1.325 level (blue arrows).
Main market drivers for next week will be: change or not in bank rates, employment changes.
Here's how I see market, thank you for reading and apllying my thoughs for yourself. :)
Here's how I see market, thank you for reading and apllying my thoughs for yourself. :)
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