EURUSD: Long because of Bat and Moon
I am not a bull of the EURUSD pair at all, but I can’t deny the setup here for taking a speculative long condition.
1. The red vertical line is the 6/8th harmonic time pivot – when an instrument is experiencing a fast rapid move higher or lower and then gets close to this time pivot, we often see swift reversals in the direction of the move.
2. Bullish divergence between the RSI and CI.
3. The orange horizontal line is the 1/8th inner harmonic support level, a natural area to see short term rejection lower.
4. A full moon occurs on the 9th/10th of February. For whatever reason, the EURUSD often finds market lows on a Full Moon and has a higher probability of experiencing higher traded prices after the Full Moon shows up. Again, no idea why that is but it just is.
5. Bullish Bat pattern complete.
The combination of these various time cycles and price levels yield strong indications that the downside pressure here should be rejected. My first target is the 2/8th inner harmonic pivot at 1.1023 to 1.1033. This setup does not indicate that a broader long term uptrend is about to begin, just a high probability of a steep pullback.