Near to a top or strong correction? Still no sign.

[topchess]

Hello,

If we take a look at this 1-Week EURUSD chart, the price action is similar to recent top made 1.3481/1.3667. Stochastic shows overbought condition, yet to seen any significant bounce in the pair. Instead it reversed the bounce to recent high 1.3361 easily.

What is your thought? Near to a top? Perhaps another 1.3667 and fall down to below 1.3 like last time? Given stochastic is overbought.

We're close, but can't call for a top yet. Help me here

[topchess]

A surge to new trend high and a close below previous candle low. Key reversal candlestick assuming we won't close above 1.3275 *quite far..*

View attachment:

[bmystic]

So if I am reading this right? Not sure I'm just learning also.

So would the chart read...three black crows,a doji,and a full engulfing bearish candle?

Then you would sell? Right???

Any info will help.
Thanks

[topchess]

That is a good reason to sell. but mainly, a "key reversal" here is a candle which makes a new high but closes below previous candle bottom (in our eurusd daily case) is indeed a signal of a strong correction developing or a reversal even.

AUDJPY made the same pattern earlier and dropped 100 pips. I am selling EURUSD too into Monday for a drop towards support at 1.3120 area.

[professorx]

I have no idea what is going to happen next week, but I would like to sell after a retracement of todays daily bar. Maybe I will find a reversal pattern near one of the fibs; that's the plan. A conservative stop could be placed around 1.3375. If i'm wrong i'm wrong; time for the next trade!

[topchess]

While a retracement was likely, prices pressured downside again, touching 1.3160 in a gap. I feel its very late to enter, instead I like to see a bounce first to 1.3194 to get in the short side. Next supports 1.3140/30/18

Key reversal on candlesticks and moving averages cross suggesting we might test these zones.

[topchess]

Prices reached first notable support on daily chart 1.3140, steadying just above now.. but not expecting too far for a trend change. lower later I believe.

Anyway, This move in favour of USD is not normal. These are not the same traders who just sold the greenback a few weeks ago in huge amounts. I believe it's a huge reduction in rate cut exepcations, and market is pricing it right now.

and if the latter is true, are we breaking below 1.30 again?
Question for the forex experts. Waiting a response on this

[professorx]

Just remember: anything is possible.

I'm still waiting for that retracement

Things should be heating up in about 6 hours.

[topchess]

Stabilized at 1.3130 daily support, good thing is that if we breaks down this, look for 1.3118 before 1.3086

Might be a base and a rally developing too from here