The report yesterday mentioned congestion with selling on higher (4H+) time frames. Our short target was admittedly too conservative (1078) knowing prices could indeed fall to previous lows (4H range), which is a fairly strong support level (~1072). However the bearish acceleration aligned all (D-) time frames indicating a lower low could be hit (low 1060s). No bounce potential in sight, and no major change in outlook, i.e. same (4H) trading range since Aug 12th with now a lower bias.
TF stalled on 625 to then fall to 610 which is a strong support level on (1H) time frame. Selling pressure is still there though, and support could be found a little lower (range lows not hit yet). Having said that 610 can hold (even if penetrated above 600) and selling pressure can translate in some congestion. Longer (D/W) time frames indicate same bearish congestion going forward.
EURUSD surprised us with a (1H) volatility spike back to 1.29. Our dominant time frame being (4H), this has not affected us in the least. The configuration has not changed with a bearish congestion in the same (4H) range, which could eventually break on the down side to test strong support levels in the low to high 1.26 area (1.264 – 1.269). As mentioned several times in previous reports, longer (D/W) time frames are looking for a higher support level to confirm the turnaround (June low).
( Posted 8 AM UK )
NB: Same few Twitter updates based on (4H) time frames for another week.
