DDF told us Neutral and that's what we got.
Today closed with a Hammer, which will leave the Bears vulnerable, and technically the candles are telling us to go long, or at the very least close the short positions.
The Hourly indicators have turned Bullish and oversold so even though the Daily charts are still Bearish it would appear that a consolidation will take place.
I've drawn an alternate fork (Gray) which I believe will contain any rally that breaks out of the Green fork. It's a bit early to draw the upward fork (also gray), but it appears we may need it.
Using Fibonacci Extention from the high on April 26 to the low on May 7 at 1094 I get that we have reached an expected target at 1047, but using the real low of 1065.79 the day before I get a target of 1018.70. Isn't it interesting how these numbers continue to reference each other.
With trend line support, and the Green Andrews Pitchfork crossing at the 1018 level I believe we have just a little further to go before the market relaxes sometime around the end of the week.
That takes Price down to the Green handle, and leaves plenty of room for the second half of the Green fork. The Weekly Kumo will offer support near 1030. Once afloat within the Kumo support will turn to resistance. The bottom of the Kumo will then offer support near 894. As I recall 954 was a previous Fibonacci on the way up.
Not as oversold as I would have imagined.
Yesterday 50 S&P points ago, I warned of on impending Squeeze which would result in a volatile market.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.