Harmonic View Of Next Week's Market: FX Pairs
Sofien Kaabar | Nov 08, 2019 08:50AM ET
Disclaimer: The views shared through tweets are personal and not of my employer. Harmonic patterns are correction patterns and not reversal patterns. Any position must be taken after a thorough research.
Below are chart projections of Harmonic patterns (ABCD to be precise) for the upcoming week starting on Nov. 11 to Nov. 15 that forecast some small inflection points along the way. Profits can be taken when prices react from the below grey box (Potential Reversal Zone - PRZ) and retrace 38.2% from the beginning of the pattern. We have chosen EUR/NZD, USD/CHF, EUR/GBP, USD/CAD, and EUR/CAD for this week as they are presenting interesting configurations.
1. USD/CAD: ABCD pattern in the making and will be confirmed by the surpass of 1.3205. Potential reversal zone lies at 1.3310 that also coincides with a trend line resistance. Price action is still far from the PRZ for any conclusion about the RSI. If it approaches the 70 level or diverges, then your trigger is set. Consider a 38.2% retracement of all of the move for a target the moment prices touch the PRZ.
2. EUR/CAD: Approaching the lower end of the channel with a bullish ABCD in the making. A PRZ around 1.4450 is to be considered for a long trade.
3. EUR/NZD: Double ABCD patterns in the making but causing a large PRZ. Preference is to act on the more conservative one at 1.7115 which is also the bigger one. Nevertheless, some form of reaction can be expected at 1.7200.
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4. USD/CHF: Potential reaction from 0.9980 towards 0.9920 on a 0.883/1.130 ABCD pattern.
5. EUR/GBP: Still approaching its PRZ at 0.8475. The time to PRZ is also important as it is preferred to be symmetrical to the first retracement of the ABCD. The RSI is not showing clear reversal signals yet and hence it is a wait-and-see scenario for now. The targeted level remains the same at 0.8860 after touching the PRZ.
In conclusion, always do your own research before trading / investing. Remember, it's the fundamentals that govern the markets.
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