Everything is explained on the chart but to explain a little further:
1. Very, very clean AB=CD pattern setting up here. Couple more pips down and it closes perfectly. BC leg retraced to 0.382 fib on the dot.
2. There are 2 major, daily structure levels surrounding the current position.
3. The AB=CD pattern closes on exactly the 0.382 fib retracement of the last leg on the monthly chart providing heavy support and a sturdy springboard for the market to bounce off of.
4. 1.3220, the level at which AB=CD should complete is a nice, round number.
5. 3 strong bearish candles currently driving the market down about to meet heavy resistance (actually, support, but you know what I mean).
I don't see what else we can ask for. We've got an oversold market, minor and major (HTF) structure levels, FIB confirmation and congruence from HTF, AB=CD completion and bullish divergence.
Targets are:
ENTRY ......... 1.32200
PROFIT ........ 1.33700 (+150 pips)
STOP ............ 1.31200 (-100 pips)
For a risk/reward ratio of 1:1.5
Good luck.
1. Very, very clean AB=CD pattern setting up here. Couple more pips down and it closes perfectly. BC leg retraced to 0.382 fib on the dot.
2. There are 2 major, daily structure levels surrounding the current position.
3. The AB=CD pattern closes on exactly the 0.382 fib retracement of the last leg on the monthly chart providing heavy support and a sturdy springboard for the market to bounce off of.
4. 1.3220, the level at which AB=CD should complete is a nice, round number.
5. 3 strong bearish candles currently driving the market down about to meet heavy resistance (actually, support, but you know what I mean).
I don't see what else we can ask for. We've got an oversold market, minor and major (HTF) structure levels, FIB confirmation and congruence from HTF, AB=CD completion and bullish divergence.
Targets are:
ENTRY ......... 1.32200
PROFIT ........ 1.33700 (+150 pips)
STOP ............ 1.31200 (-100 pips)
For a risk/reward ratio of 1:1.5
Good luck.