As EURUSD nears 1.14 what to look for from ALGO Trends
|The euro’s strong pop today puts it very close to my 1.14 target I posted several times over the past few weeks. The question is as the Euro nears 1.14, how to proceed. Below I have posted the daily algo trend chart and highlighted our Cycle indicator which normally diverges at the top and I expect this to occur over the next few days. I am now looking for near term sideways action to take hold with plenty of up and down trading . Why, ? As cycles reach tops they rarely V-top but chop around in various sizes and this is what I expect the Euro to do in the coming weeks.
The chart below shows the algo trend but also shows the trend chop set up in the top left. The equity curve is dropping below The major algo trends after a sizable period of positive profit growth. this signals that we should seeing 1.5-2 point cycles in the coming months with not a lot of direction. This will change the dynamic of the short term trading, but i think for the better with an up tick in short term volatility and our bread and butter is short term algo. The very bottom chart is the Euro algo for the past week and today although not great for chop , trend was great.
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