EURUSD

Firstly this morning, some cyclic phasing. I have minimized the amount of posts allocated to this work as it can all get a little specific, and the markets tend to roll around the target dates causing mutual disdain. However, they do work given enough space to breathe. This 4hr chart combines FLDs based on my selected moving averages, with momentum studies, to mimic work of Hurst rather than repeat what has gone before. Straight down to the bottom of the chart and look for the pink boxes, where the next anticipated nest might appear, based on the length of the last 'low to low' period in time. Neither the MACD or current location of the 4hr momentum suggest the drop is coming now. There tends to be 3 loops of the 4hr study before the daily comes down and we are only on two, so far. The third loop might be the wave 2 of the move down, so the next thrust up is the one to bank in my mind. The beginning of January looks ripe for that low. Regular readers will know that the green 20day FLD in the main chart was the magnet for price in my opinion, drawing the response from the 1.3294 low. Price has now made it above that FLD and just back tested it. In addition, the red weekly, dark purple 2 weekly and green 20day (monthly) are all stacked in a bullish formation, with the light purple 40 day (2 monthly) FLD directly above. A sustained move above that 40 day, would create a bullish stack right down to the gold 80 day FLD. Price has also made it to the 85.4% speedline of the drop from top to bottom and does not look to stressed by the meeting. Price has also made it back into the regression channel from the 1.27541 low to 1.3831 high, suggesting that this channel is still live and attracting resistance for a new trend down. All in all, there continue to be multiple bullish clues. All of them may be duping me into playing long and covering when I need to, rather than playing for the shorts instead. For now, I remain bullish.