Bearish plans prevail | 28 Oktober 2015

28 Oktober 2015, EUR/USD

The daily chart: yesterday brought false break up of the inside bar. On the one hand, it is good for bears (false breakdown - this signal has almost the same "weight" as true breakdowns jave), on the other, it is bad for them (because the rising full swing was not built, and hence potential drop in any case will be limited). However, the price is very likely to go under the last bottom (1.0996)

H1: Meanwhile, potential downward structure does not have a second consecutive intersection down (this would happen if on the run bears could break through the level of 1.1029 (green mark and red arrow). Otherwise, it is necessary to wait for the full swing up to be able to sell more technically (the best area for this scenario is the local O&U from 1.1071)

Expectations:

1) Break of 1.1029 support and at 1.0996 beginning of decline. Goals are difficult to determine, since swing down is already large enough and, therefore, its potential seems exhausted.

2) Pre-roll back into the zone of 1.1071, and then work out in the downward direction under the first scenario.

solutions: We sell at breakdown of 1.1029 or 1.1071. Goals - under 1.0996. On the news groove can be strong , however, I recommend "not to be greedy" and take profit in any doubt in the possibility of further decline.

Aleksey Panasenko
Analis perusahaan "FreshForex"
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