ANALYSIS: EURUSD: Whole Lots A patterns point the way UP!
Post-NFP, this pair has reacted to the upside as was expected technically. Prices bounced right off the bottom uptrend line of the larger contracting triangle. It has also respected the Gartley pattern I had identified last week that is now already in profit (+123 pips). Recent PA has now created a bearish bat pattern that has just completed. I expect that prices may respect this bat as well and head back down slightly before resuming an uptrend.
WEEK:LY CHART
This up move might be the beginning of a much larger uptrend in a wave C of a possible ABC zigzag correction that may see prices heading up SIGNIFICANTLY. Or it may be in the wave C of a ABCDE contracting triangle.
DAILY CHART
A little bit messy but I think the message is clear: LONG!
CONCLUSION AND MY TRADE PLAN
My analysis is telling me that this pair has a ways to go to finish this corrective consolidation phase it's in so I am not expecting any significant new downtrend to start. Not right now. So in that case, I am only playing this pair to the LONG side. Yes, it may still head down as I'm not infallible and the market will do whatever it will do regardless of how many pattern, lines, wave counts or whatever I put on the chart. But the rewards if I am correct are well worth it. If prices head down from the bearish bat that is currently in play, I expect only a small retrace and then head up from there without retesting the bottom trend line of the contracting triangle. However, if it heads down and through the trend line, then all bets are off and I'll need to re-evaluate what is happening.
*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I will know my posts are useful to you. Doing so will encourage me to post more! As always, all constructive comments are welcome. Agree or disagree.
WEEK:LY CHART
This up move might be the beginning of a much larger uptrend in a wave C of a possible ABC zigzag correction that may see prices heading up SIGNIFICANTLY. Or it may be in the wave C of a ABCDE contracting triangle.
DAILY CHART
A little bit messy but I think the message is clear: LONG!
CONCLUSION AND MY TRADE PLAN
My analysis is telling me that this pair has a ways to go to finish this corrective consolidation phase it's in so I am not expecting any significant new downtrend to start. Not right now. So in that case, I am only playing this pair to the LONG side. Yes, it may still head down as I'm not infallible and the market will do whatever it will do regardless of how many pattern, lines, wave counts or whatever I put on the chart. But the rewards if I am correct are well worth it. If prices head down from the bearish bat that is currently in play, I expect only a small retrace and then head up from there without retesting the bottom trend line of the contracting triangle. However, if it heads down and through the trend line, then all bets are off and I'll need to re-evaluate what is happening.
*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I will know my posts are useful to you. Doing so will encourage me to post more! As always, all constructive comments are welcome. Agree or disagree.
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Twitter: @andrewefxselect
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