Eur/Usd Analysis 23/6/19

The context: institutions bought at 90% discount – refer to my article about “If You Were an Institution”.

This happened after a show of strength: first price left the long term over oversold black marker.

What target they have in mind is anyone’s guess, but the usual, stand out suspects are the 50% line and the 80%+ area.

The last measuring low was 1.1281 – until that gets violated, the uptrend remains (a divergent violation should be discounted). On Friday they goosed up the price to the Purple Haze line which is a 3x stretch from the mean. A correction is very likely here: they would have to give a discount to get enough bears interested.†††

Given the steep incline of Mr. Maroon, as my first thought, I would not expect the correction to get to 1.13. The neutral zone around the upper guard rail is currently at 1.1313 and rising.

About the upcoming correction: it would go oversold twice = there would be 2 measuring legs down, and the second one would ultimately adjust the channel low.

The deepest correction currently possible would fake out the 2nd 4H doji.

1.1288-1.1285 would certainly do the trick.

This would coincide with the spark zone between Mr. Maroon and the Green River by the time price gets there.

The prospect is a start of a daily wave 3 to the upside. Scary, huh?

Behold the Energy Bands (the moat)

Don’t forget to mention about them in my Wikipedia article please.