The EURUSD on the Forex chart rallied the whole week following last week’s breakout below a tight 2-month Bear Channel. By this week`s high close the pair printed a bullish reversal following a failed bear breakout below a potential final 2-months flag. Friday traded slightly above 1.14828 January 14 high, the former 2022 top.
These recent developments carry the very real danger that the current 2022 low below the 2-month Bear Channel was the mother of all bear traps.
Next I will show you why the this daily upswing starting at 2022 low with a 99.99% probability has to deliver another higher 2020 high in course of the next week. Also I will present why market should stall again near the 1.1524 in course of the next few days and starting from such a next small higher 2022 high another daily downswing should begin that likely has to test back the 1.1350 to 1.12 or so within course of February ...
In addition, I will address the important time fact why the current 2022 low suddenly has a +75% probability of being THE FINAL LOW of the ENTIRE correction cycle!, so logically, a multi-month long uptrend-countertrend-bounce-bull market upleg-or only a sideways trend - whatever -, should now be on the way!
==> The Euro is overdue to begin its yearly cycle advance! IMHO, a break above the 1.16 level should be the nail in the coffin for bearish hopes that the downtrend will continue.
Traders still should use the above at 2020 Bear Market Low anchorable weekly 19 Candle GUNNER24 Up for position trading and the forecast of the most important = longerlasting trend cycles.
Please note that both, the lower & the upper line of 1st were very accurately considered as main resistances in the past.
The 1st double arc is one of the best confirmed resistances I`ve ever recognized as it is not only a well-defined price-resistance rail but also a combined price-time magnet as A) the starting point of the corrective cycle as B) the subsequent lower highs of the corrective cycle aligned to the Fib numbers are located at its lines with 100% accuracy.
The correction started at # 1, the final high of 2020, and at lower line of 1st. Correction week # 21 is final high of 2021 and the major lower year high is final and 100% accurate work off of upper line of 1st. Another important lower correction high is the # 35-top what arrived at a negative backtest of the lower line of 1st from below.
The past week candle is the 56th candle of correction cycle. It`s low is the so far 2022 low and cause A) the 56 obviously is linked to the big, major 55-Fib number (possible major time event = possible major trend turn event) and B) this week candle is a heavy bullish reversal candle after the possible 55-Fib number time event and C) additionally will close far, far above the natural yearly resistance rail of the lower line of 1st the odd is now that # 56-so far 2022 low made at 1.11214 marks the possible end of a then TEXTBOOK CLASSIC 1-year-correction cycle.
This week`s candlestick on the weekly EURUSD Forex chart is a Big Bull Surprise bar closing near its high. It reversed the prior 2 big bears and traded slightly above January`s high. By this positives bears failed to get follow-through selling following last week`s bearish breakout. This slightly higher February high compared to the January high is a weaker buy signal on the monthly chart.
But nevertheless, it is a bullish signal on a monthly basis. Perhaps more importantly, it is the first monthly buy signal in many, many months!
==> Normally at the 1.11214 low point of this year, the yearly cycle advance should have begun!
=> For the coming trading week there is a normally very, very powerful yearly resistance upmagnet, what is perfect backtest magnet on yearly base formed by the well-confirmed 1*2 Bear Angle and the equally sharply-confirmed yearly upper line of 1st main resistance!
This for sure very attractive yearly resistance upmagnet for the next week candle runs at 1.1524. There the pair should run into heavy resistance within next 3 to 8 trading days or so, only to be rejected again from yearly 1*2 Bear Angle resistance after a next small higher year high.
Only after further pullback of maybe 2-3 week candles, possibly down to the 1.1350-1.12 major 2022 support area, the final overcoming of the 1st double arc should succeed quite rapidly on a weekly closing base! Such first important weekly buy signal should/could trigger an extremely prolonged and persistant upcycle and thus be the very last confirmation that the next upward trend has begun at the # 56-2022 low.