Harmonic View Of Next Week’s Market: FX Pairs

  


Disclaimer: The views shared through tweets are personal and not of my employer. Harmonic patterns are correction patterns and not reversal patterns. Any position must be taken after a thorough research.

Below are chart projections of Harmonic patterns (ABCD to be precise) for the upcoming week starting on Nov. 4 to Nov. 8 that forecast some small inflection points along the way. Profits can be taken when prices react from the below grey box (Potential Reversal Zone – PRZ) and retrace 38.2% from the beginning of the pattern. We have chosen , , , and for this week as they are presenting interesting configurations.

1. : A 5-0 harmonic pattern has just made touch-down with its expected potential reversal zone at 107.30. The 200-period smoothed moving average is acting as a support as well as the RSI. Setting a target at 108.90. It is worth mentionning that with this pattern, there are always two expected PRZ’s with the second one being safer. In case the 107.30 breaks, the next PRZ lies at 106.80.

USDJPY H3

2. : Still approaching its PRZ at 0.8475. The time to PRZ is also important as it is preferred to be symmetrical to the first retracement of the ABCD. The RSI is not showing clear reversal signals yet and hence it is a wait-and-see scenario for now. Target (NYSE:) remains the same at 0.8860 after touching the PRZ.

EURGBP H3

3. : The ascending channel and the RSI’s proximity to the resistance add conviction to this bearish trade if the prices touch the PRZ at 0.6960 to target 0.6850.

AUDUSD H3

4. : ABCD pattern at the upper limit of the ascending channel coupled with an RSI under resistance is providing a good shorting opportunity at 0.8475 to target 0.8400.

NZDCAD H3

In conclusion, always do your own research before trading / investing. Remember, it’s the fundamentals that govern the markets.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link