Finally we have some life in EU. On the daily it was stopped near 1.40 which was near the top of a wedgie pattern. Its also broken below an uptrend line which had been running since June of 2013 and has broken back below a broken downtrend line which became support from April 30th to May8th.
On the weekly Eu is still trading above a broken wedgie pattern with the broken downtrend line and the still intact uptrend line likely to become support. Candlestick wise It looks very toppy. I'm not big on candlestick patterns and bar by bar analysis though. Interestingly 1.3950 is the 50% fib from the all time high to the 2010 low. I think breaking below the weekly uptrend line opens the gates to the -27.2% fib 1.0750 :)
On the hourly it closed the week below the value area and will most likely open below the value area. Weekly camarillas and the pivot are lower which means the week will most likely be bearish. 1.3815 is the monthly pivot, 1.3830 is the weekly pivot and 1.3825 is the weekly cam H3. This area will most likely stop and bounce. Weekly cam L3 at 1.3688 is the first weekly support.
The market profile, floor and camarilla pivot 2-day relationships are all bearish with the open likely to confirm bearish sentiment. Therefore, I'll primarily be looking to take shorts. The first hotzone comes at 1.3770/3771(Value area low/Bottom central pivot). Above that 1.3782/1.3784(Central pivot/Camarilla H3). Ill look for the mini time-frames(1min or 10tick) to change trend around these levels to enter shorts. The width of the value area, central pivot range and the 1st layer of the camarilla pivots hint at a likely range day. Keep in mind this does not mean it will have a tiny range it just means that the turning points are likely to be R1/S1 or Cam H3/L3. When the levels are tight its likely to reach S2/S3 and the 4th and 5th layers of the camarilla pivots to set the trend for few days following.
Enjoy the week, TB