EURUSD LONG - Head and Shoulders forming
Updated
As per my previous postings, EUR has been taking a massive hit but it is looking likely that the end is near as a rally of sorts is likely going to happen over the next day or two.
Below are some key facts and thoughts to share.
1: EURUSD has a Bullish Divergency in every timeframe from Monthly to hourly indicating that USD has been MASSIVELY overbought since the EUR high back in July 2008.
2: A 5 wave short followed by a 5 wave long has happened and looks likely that a possible head and shoulders is forming so we're waiting for a 3 wave corrective move down to hit a key fib level of 0.50% or 0.618% and there will likely be a rally by the EUR of sorts for either a change in trend or a corrective ABC long for a retracement move since the 1.1300 mark (US Elections)
3. FOMC saw the Fed rate increase last week to 0.75% so demand for the USD should increase but given that USD is MASSIVELY overbought, I am unsure this will have long term impact on the USD to gain strength to dip below 1.000 mark - only time will tell.
Feel free to share your thoughts on my analysis as your views are welcome.
Happy Trading!
Below are some key facts and thoughts to share.
1: EURUSD has a Bullish Divergency in every timeframe from Monthly to hourly indicating that USD has been MASSIVELY overbought since the EUR high back in July 2008.
2: A 5 wave short followed by a 5 wave long has happened and looks likely that a possible head and shoulders is forming so we're waiting for a 3 wave corrective move down to hit a key fib level of 0.50% or 0.618% and there will likely be a rally by the EUR of sorts for either a change in trend or a corrective ABC long for a retracement move since the 1.1300 mark (US Elections)
3. FOMC saw the Fed rate increase last week to 0.75% so demand for the USD should increase but given that USD is MASSIVELY overbought, I am unsure this will have long term impact on the USD to gain strength to dip below 1.000 mark - only time will tell.
Feel free to share your thoughts on my analysis as your views are welcome.
Happy Trading!
Note
ABC Correction is on the verge of completing so preparing for a LONG entry at the key 618% fib level...Good luck with the trade.
Note
Long entry activated - Happy Trading!!!
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