This is Still a Downtrend. Take a Read

3 thg 4, 2020

There are a lot of people buying right now because of the 618 retracement from the move up that occurred March 20th to 30th. What we need to remember is that we are still in a downtrend. Now that move from the 20th to 30th was actually a retracement from the the false break. So I will be looking at a 1.27 extension from that. Just so happens that the trendline from the past 2 lows looks to be directing towards that level, which is 1.0506. Price action on the lower timeframes is good at sucking in buyers which is where the banks make their money. Lower low 2 just missed the 1.27 by about 50 pips so I made a zone at which I think price could reverse. This is almost a 1000 pip range so I can understand it. USD seems very strong through the pandemic. In my prediction I think this could happen next week. Also the London session has been producing the lows and NY is providing the pullback. Quarantine has had me in deep thought about this so I appreciate you reading my analysis. Happy trading! (Disclaimer: I could still be wrong but my last EU prediction has played out well)