Luckily, it was closed on a break-even point. Reversal created the double bottom formation and the price already broke the mid-term down trendline. That is a very good sign for the buyers. Price closing a day above the 23,6% Fibonacci will be a good signal to go long. Sellers lost this one.
The second instrument is the bitcoin. Now, not so popular a year ago but it does not mean that we are done with this crypto. Actually, we enjoy analyzing it as our view is usually spot on. What we have now is a pennant (black lines). This is a trend continuation pattern and should result in a further drop. This is happening as we speak: overnight, the price broke its lower line and set new monthly lows. Our target stays on the 2900 USD/oz.
EURJPY is the next instrument in our video. Here, the price bounced from the long-term horizontal resistance on the 125.8. That bounce was not random, it is a perfectly shaped head and shoulders pattern. So far we do have a negative sentiment but we do not have a clear sell signal yet. For that, we will have to wait for the breakout of the black line first.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
More From FXEMPIRE:
- Commodities Daily Forecast – February 6, 2019
- GBP/USD Daily Price Forecast – GBP On Consolidative Action Over Brexit Optimism
- Softness Back in Vogue for Central Bankers
- Safe Haven Demand High Following President Trump’s Speech
- Spotware Revamps cTrader Help Centre and Marketing Portal
- USD/JPY Fundamental Daily Forecast – Renewed Fears Over Trade Talks, Government Shutdown Drive Investors into Safe-Haven Yen