ES is certainly bearish as we anticipated, and should be aiming lower again. As a trend situation is now materializing, the shorter time frames take a back seat so we should be focusing on the daily chart which should hit a Fib target on the low to mid 1070s. We do notice that the swing angle is too steep to be sustainable and our indicators, while bearish, point toward a possible sudden upward retracement when our target is reached this week.
TF on the other hand has almost reached the 610 target we had, so could pause around current lows. We still have a potential retracement target to 625, but again only after a last bout of selling. Note that 610 could could break and dash all hopes of a lull. In such case, we shall aim for 600, then maybe 588.
Note that if the weekly channel breaks, the Fib/MM pattern could confirm a target in the 500 levels…
EURUSD: the strong 1.416 resistance proved too strong and sent the Euro lower as expected, so we should get back to the recent daily lows. Note however that our support levels do not quite match across our time frames, and we therefore have to break 1.41 which separates the current range [1.404-1.416] in 2 halves. Despite the noisy environment, one must realize that EURUSD is very “quantic” hence tends to hover in a price range until it breaks out to the next one.
This is also a salient level on the weekly chart which will determine whether we now go for a 1.375 target or not.
There certainly is enough selling pressure left in the market right now.
( Posted 4:45 AM UK )
