EURUSD likely correction next week
Updated
EURUSD seems on it way for a new low after a triangle correction.
It seems like wave 5 of wave 1 is in progress and price is about to test a confluence zone around 1.094. However this is only a scenario that I'm following so I can trade the correction. More importantly the expected wave 3 of larger degree lower that should follow will be strong. We can sell that wave 3 once the correction is complete.
But since we are in a bearish impulse we have to take into consideration the possibility of an extension lower. I would therefore like to see divergence in this zone (1.094) in combination with a reversal pattern on lower time frames.
Updates will follow once price reaches this area.
It seems like wave 5 of wave 1 is in progress and price is about to test a confluence zone around 1.094. However this is only a scenario that I'm following so I can trade the correction. More importantly the expected wave 3 of larger degree lower that should follow will be strong. We can sell that wave 3 once the correction is complete.
But since we are in a bearish impulse we have to take into consideration the possibility of an extension lower. I would therefore like to see divergence in this zone (1.094) in combination with a reversal pattern on lower time frames.
Updates will follow once price reaches this area.
Trade active
Trade closed: stop reached
stopped out at break even. Once price broke higher we had to place stop at break even. I will let price settle and post the next possible trade soon. It is still very likely that we will see a more significant retrace soon.
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