EURUSD tradeplan
The EURUSD shows several scenario's at the moment but due to the convergence of price, both short and long scenario present low risk trade opportunities. First have a look at daily time frame.
It is unclear for now whether wave 4 is already in place or whether we need to see another leg higher for wave C. In that case we are only seeing a wave 4 of smaller degree in progress on the lower time frames.
Nevertheless the 1hr time frame shows a corrective structure for wave A (RED) now we need to determine whether this is indeed a wave A or the complete corrective pattern. I favor the scenario that we only saw the first part of the correction by means of a wave A with wave B currently in progress.
The convergence of price which might turn into a triangle will present a low risk buy opportunity once wave E is in place. Triangles occur almost always prior to the final move of the structure which will be a wave C in this case.
If however we see a break lower, we most likely see a deeper wave B that might unfold in an harmonic BAT pattern. This is a likely scenario once we see the break due to the the Shoulder-Head-Shoulder pattern shown by means of the magenta trend lines.
A break above the upper RED non-horizontal trend line will indicate that wave B is over and wave C higher is in progress.
It is unclear for now whether wave 4 is already in place or whether we need to see another leg higher for wave C. In that case we are only seeing a wave 4 of smaller degree in progress on the lower time frames.
Nevertheless the 1hr time frame shows a corrective structure for wave A (RED) now we need to determine whether this is indeed a wave A or the complete corrective pattern. I favor the scenario that we only saw the first part of the correction by means of a wave A with wave B currently in progress.
The convergence of price which might turn into a triangle will present a low risk buy opportunity once wave E is in place. Triangles occur almost always prior to the final move of the structure which will be a wave C in this case.
If however we see a break lower, we most likely see a deeper wave B that might unfold in an harmonic BAT pattern. This is a likely scenario once we see the break due to the the Shoulder-Head-Shoulder pattern shown by means of the magenta trend lines.
A break above the upper RED non-horizontal trend line will indicate that wave B is over and wave C higher is in progress.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.