like to do that using the charts below with my explanation based on the tool of discussion FIBONACCI
EURUSD DAILY CHAR
http://screencast.com/t/RC3vgzx38zT
CHART INTERPRETATION: Trend is Bearish on daily time frame as it is making swing high and swing low under a bearish trendline. But looking at price action, price seems to want to either wants to
- Rally to find higher bearish correction
- a. dip to continue bearish move or
b. dip to find deeper bullish retracement for next rally
So having establish the possible scenario, we will drop down to lower time frames to find possible trading opportunities .
http://screencast.com/t/3JNr2MRy1QJt
CHART INTERPRETATION: Price is trending higher(bullish) on 4H time frame. If this is sustained, then we will assume, scenario 1 as established on daily; price trending higher to find deeper bearish correction. Price breaking the established high at 1.3319 will confirm that and traders will look forward to seeing euro trading bullish till 1.3800 next major resistance(supply level). Already, a bullish opportunity has been signalled on 4H time frame at the bullish trendline drawn cum support level. Buyers at this time will cover their open buy position because of a) the resistance level(minor) and b) the uncertainty in euro zone
Peradventure price fails, to satisfy the possible second scenario on daily. Then price will need to break the trendline on 4H time frame and deep lower, then focus will be at 1.3000
http://screencast.com/t/wfmtfE4yjp
CHART EXPLANATION:
Bullish gartley(advanced Fibonacci confluence) gave a bullish entry with the following technical confirmation
- support/demand level
- trendline bounce
- Bullish engulfing reversal candle stick formation
Well, this could be either sustained or fails. But investors have taken partial profit and watching the market for the outcome of Greece debate.
Thanks
Fowope mike
http://screencast.com/t/3JNr2MRy1QJt
