The EUR/USD pair is almost certainly forming a bearish 2618 trade setup. Price has broken the double bottom at 1.662 and
is just inches away from touching the 61.8% Fibo retracement level above.
Given the two speeches by Mario Draghi tomorrow, and the release of the minutes from the last FOMC meeting on Wednesday,
could cause this pair to form the 2618 bearish trade setup. A possible scenario is that price will shoot up tomorrow, and then
head south fast on Wednesday after the release of the minutes.
Though despite such speculation, I still believe that price will go down. Measuring where price will go to using an ABCD pattern
indicates that it will settle around the monthly S2 level, near the 200SMA. Obviously, if price bounces from there we can start
targeting the mid 1.20's region.
However, should price reach to the bottom of the double top extension column at 1.1231, hence,
closing below the 200SMA then most definitely the next target will be the closing of the French election GAP below, the bottom of
the GAP as I mentioned in a previous analysis, sits right between the 78.6% Fibo retracement level and the yearly pivot point level,
thus, a very key price zone in determining the direction of the EUR/USD.
Happy trading
is just inches away from touching the 61.8% Fibo retracement level above.
Given the two speeches by Mario Draghi tomorrow, and the release of the minutes from the last FOMC meeting on Wednesday,
could cause this pair to form the 2618 bearish trade setup. A possible scenario is that price will shoot up tomorrow, and then
head south fast on Wednesday after the release of the minutes.
Though despite such speculation, I still believe that price will go down. Measuring where price will go to using an ABCD pattern
indicates that it will settle around the monthly S2 level, near the 200SMA. Obviously, if price bounces from there we can start
targeting the mid 1.20's region.
However, should price reach to the bottom of the double top extension column at 1.1231, hence,
closing below the 200SMA then most definitely the next target will be the closing of the French election GAP below, the bottom of
the GAP as I mentioned in a previous analysis, sits right between the 78.6% Fibo retracement level and the yearly pivot point level,
thus, a very key price zone in determining the direction of the EUR/USD.
Happy trading