EUR/USD was consolidating, then broke out for a big move up before consolidating again. Price recently broke out to the downside, so I am looking for a long opportunity within the green rectangles. These areas line up with previous structure levels as well as Fibonacci levels so these are likely key reversal zones Target will be the bottom of the consolidation range. My plan is to wait for a bounce off these zones and then get long with stops below the next lowest zone. If the market pushes back up then I will be looking to get long at the top of the previous consolidation range once price breaks and closes above that level.
Comment:
This idea is still valid as the market works its way down to our kill zone. Keep your powder dry and we should see a valid buy signal in the near term.