EURJPY Weekly and Daily view – Inside a consolidation phase

Lud Trader

Active Trader
Nov 3, 2017
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interactivtrading.com
In our previous analysis, we were explaining to you why it makes sense to short the level 1.33:
  • Upper line of the Andrews Pitchfork
  • Fibonacci levels
  • Resistance level
So, as it was expected, prices have bounced off the level at 1.33, and are now building a Double Top Pattern with a support level at 1.3150 forming the neckline (second graph).

The first graph shows all support and resistance level on the weekly chart, indicating the potential for a downward move. If prices were to break below 131.5, my Target Profit would be 130. Be cautious as a break above the current range is also possible, in this case the Target Profit would be 139.

Prices are building a new channel (black lines), with a bearish divergence on the RSI suggesting that buyers are taking profit off the table as prices are approaching a major resistance at 133.

The upper line of the Andrews Pitchfork (red lines) can act as a resistance. So, it still makes sense to look for short positions with the lower line of the channel as a first Target Price, and then the height of the range duplicated to the downside. In this case, prices can break either to the upside or the downside. In this situation, respecting the IVT money management rules is the key !

Please, click here to have access to the graphic :
https://interactivtrading.com/en/analyses/15487-weekly-and-daily-view-inside-a-consolidation-phase
 
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