FX.co ★ Ambar Hassan | EUR/USD

Looking at the daily chart using my wave technique, I can see that the MA100 is moving clearly parallel to the floor, and I interpret this as confirmation that we have been experiencing a flat mood throughout this entire week. I notice that the MA18 has currently managed to initiate a reversal from the recent highs down toward the low, and I believe this indicates a developing southerly mood that deserves my close attention. I observe that all of our candlesticks are currently being drawn between these two moving averages, and I recognize this as a classic pattern with two moving averages signaling a persistent flat market condition. I see that the price itself has started another modest sideways movement precisely in the middle of this established flat range, and I conclude that we are effectively looking at a straight-line corridor formation on my charts. I apply the pendulum rule to this situation, and I reason that since we bounced off the upper limit of this corridor, we should logically be moving lower from here

I examine the Ichimoku Cloud next, and I see that it is currently displaying sell-off colors that reinforce my bearish perspective. I look ahead in my analysis, and I note that after technically completing three bullish sub-waves in the recent price action, the overall momentum now shifts decisively to the bearish side according to my wave counting methodology. I consider the cloud's breadth quite significant, and I find promise in the fact that everything appears to be proceeding quite technically, which gives me confidence in my wave interpretation. I turn my attention to the basement indicator clusters, and I observe that they are heading for a significant decline, which aligns perfectly with my overall bearish thesis. I synthesize all of these technical elements together, and I find myself leaning strongly toward a southerly move as the most probable path forward. I anticipate that this downward movement will likely test the key moving average, and I specifically identify the level 1.1685 as my primary target based on the confluence of my wave analysis, the Ichimoku signals, and the basement indicator projections. I feel confident in this assessment because I have applied my wave technique consistently, I have considered multiple confirming factors, and I have remained disciplined in my technical approach to this instrument.