EU got a lot of traders by surprise. After 5 impulsive waves from 1,03 to 1,21 an ABC correction was expected, to 38,2% or 61,8 Fibonacci retracement.
The ABC is hapenning, probably a 5-3-5. If this pattern happens, we finished the 5 waves down forming A, and a B is developing.
The problem with B is that it can go to a deeper retracement, to levels as high as 88,6% (a little over 1,20). That is a disaster for those that shorted larger lots.
Certainly a lot of SL will be triggered!
I will wait an end of B wave to short to 38,2 and 61,8% level. A reversal candlestick pattern in daily chart could give us the SL for this trade.
The ABC is hapenning, probably a 5-3-5. If this pattern happens, we finished the 5 waves down forming A, and a B is developing.
The problem with B is that it can go to a deeper retracement, to levels as high as 88,6% (a little over 1,20). That is a disaster for those that shorted larger lots.
Certainly a lot of SL will be triggered!
I will wait an end of B wave to short to 38,2 and 61,8% level. A reversal candlestick pattern in daily chart could give us the SL for this trade.
Comment:
After good German data, EUR/USD is moving in a corrective B. 1.176-1.187 is a possible reversal area... let's wait price action near fibonacci retracement levels...
Comment:
Eur/Usd sellers were caught on the wrong size of the lane... now bears start to believe in another bull cycle to 1.22-1.24.. in my opinion this one is B leg and propably is the 2 of a impulsive 5 wave down...
We can go on deeper retracement... but a reversal is expected at 61.8% level at 1.186-1.189.
I will believe in uptrend only if 1.21 falls.
We can go on deeper retracement... but a reversal is expected at 61.8% level at 1.186-1.189.
I will believe in uptrend only if 1.21 falls.
Comment:
Reversal happened at 1.186, but I believe now we will go to 1.151 or 1.143 in this down leg...