Hi all,
The EURUSD has a Cypher (as many have pointed out), however, the final extension is a little off. The CD leg blew past the predicted end point. As Cyphers go, this one isn't horrible, but technically not correct. If the pattern holds, we should see a retracement near 1.1670ish. That would drop us back in the channel. We've seen the EU head-fake a breakout before. My 'things to consider' list:
1. Technically, we are above down trending resistance. In theory, we should stay above this level (we all know how that goes).
2. If the current 4 hour chart holds, we have a convincing candle reversal (Piercing Line), but only if it holds.
3. We have a 'Cypher'. I put that in '' because of the math.
4. My favorite; both X Meter and Wave Trend are extremely over extended. This is usually strong confirmation for a reversal or consolidation. Remember, not all consolidations form reversals. Some consolidations just grind sideways until the next impulse.
With all of that in mind, I am short @ 1.17962 with a tight stop above X. Aaaaaand, now we wait.
Well, I took so long to post this that #2 is confirmed, lol... :D
The EURUSD has a Cypher (as many have pointed out), however, the final extension is a little off. The CD leg blew past the predicted end point. As Cyphers go, this one isn't horrible, but technically not correct. If the pattern holds, we should see a retracement near 1.1670ish. That would drop us back in the channel. We've seen the EU head-fake a breakout before. My 'things to consider' list:
1. Technically, we are above down trending resistance. In theory, we should stay above this level (we all know how that goes).
2. If the current 4 hour chart holds, we have a convincing candle reversal (Piercing Line), but only if it holds.
3. We have a 'Cypher'. I put that in '' because of the math.
4. My favorite; both X Meter and Wave Trend are extremely over extended. This is usually strong confirmation for a reversal or consolidation. Remember, not all consolidations form reversals. Some consolidations just grind sideways until the next impulse.
With all of that in mind, I am short @ 1.17962 with a tight stop above X. Aaaaaand, now we wait.
Well, I took so long to post this that #2 is confirmed, lol... :D
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