AB-CD pattern formed on EURUSD on the daily chart, just so happens both legs have been high and tight flag patterns. So far, all the rules of the patterns have been met therefore we are waiting on a catalyst; just might be tomorrow's NFP. This CD leg has formed at the significant price of 1.20 therefore if the flag pattern performs as it should, eurusd will rocket right on past this resistance hurdle.
**Also take note of the similarities in the multi-timeframe stochastic i have highlighted between the AB leg and the CD leg.
Other reasons to go long EURUSD:
-Euro economic data has been consistent and in range of almost all forecasts and expectations for months now, while the Dollar has continued to produce choppy inconsistent data in lieu the dollar is underperforming on almost all pairs (EU, NU, UJ, AU, UC and so forth)
-DXY over the last 8 months have broken down out of multi-year highs, and EXY has broken out of multi-year lows; hinting towards a mean reversion (back to the sweet spot) of the two largest currencies in the world
-Odds of a rate hike are not certain yet however, USD Yield Curve is likely to get steeper if inflation expectations rise again as well as the FED's possibility to delay tightening.
**Also take note of the similarities in the multi-timeframe stochastic i have highlighted between the AB leg and the CD leg.
Other reasons to go long EURUSD:
-Euro economic data has been consistent and in range of almost all forecasts and expectations for months now, while the Dollar has continued to produce choppy inconsistent data in lieu the dollar is underperforming on almost all pairs (EU, NU, UJ, AU, UC and so forth)
-DXY over the last 8 months have broken down out of multi-year highs, and EXY has broken out of multi-year lows; hinting towards a mean reversion (back to the sweet spot) of the two largest currencies in the world
-Odds of a rate hike are not certain yet however, USD Yield Curve is likely to get steeper if inflation expectations rise again as well as the FED's possibility to delay tightening.
