Analysis method - “Gann Swings + Price Action”
October 2, 2018
Downswing, which carried the major, reached a certain Rubicon - the psychological handle 1.1500, from where there are only two ways: either forming of new upswing (red arrow) or increase of decline with gaining a foothold at the 14th figure (watch the black arrow). Due to the fact, that structure has expanding nature, both scenarios are equiprobable. Thus, traders need confirming local signals, that are formed with respect to the support 1.15.
Local structure shows obvious upbeat position of buyers, who ACT actively from the 1.15 handle, that forms a clear bullish momentum right now. We expect testing of the complex pivot-zone 1.1570-1.1580, from where the probability of new decline will be high.
So, euro’s recovery towards the 1.1570-1.1580 handles is expected and then new downswing.
Longs towards 1.1570-1.1580.
Shorts from the 1.1570-1.1580 area towards 1.1520-1.1530.