Look at how EURUSD responded to the Fibonacci Projections2 Weeks ago we were caught up in a nasty range for EURUSD - which in this chart I've marked it with an "abc" correction for the previous down move.
After that we continued falling down and as you can see I've marked the 5 wave sequence for this fall.
Now the interesting part that I noticed right now,
I've drawn a fibonacci projection for the wave 1 after I marked the 5 waves and look how the 3rd wave bound right on the 2.618 projection of wave 1 and started correcting!
If this respect of fibonacci continues for this pair I'm looking at another fibonacci ratios confluence at the rectangle zone.
I've set it as the target for my short contracts and I will consider buying this pair at that price.
Since the next week is a quiet one fundamentally, I will not be expecting choppiness like the last week. So the risks are basically minimal.
To make it short,
My trade ideas:
Short to the rectangular area and then long after we hit that.
My targets for the long position has the confluence of a strong resistance from the 4th wave and 38.2% retracement of the whole down move.
Have a good trading week.
