EURUSD is today’s focus and we start by looking at the six hour candlestick chart. In the chart below you will notice that we are downward biased. The upward move from 1.2036 is in 3 waves, therefore corrective. As it followed a downward impulsive move from 1.49, we believe that the downward trend has restarted after the upward correction that reached 1.37. From that level prices started a new downward move towards 1.2740. An upward 3 wave correction followed to 1.3240 and we believe that wave 2 is completed and we are now starting a new impulse downwards.
Below you can see our zoomed in wave count for the short term. Until now there is no overlapping wave action. The waves can be either counted as a 1-2-3-4 and expecting 5 down below 1.2940 or can be counted as 1-2-i-ii with much lower extension targets for the end of this impulse that started at 1.3240.
Concluding we are downward biased as long as prices move downwards in an impulsive pattern and stay below 1.3240 high. Wave 2 could very well be sed as a safe stop level for bears. For more help trading this pair become a member today and try us for one week. You will witness how our analysis will bring value to your trading. Check our past performance and don’t hesitate to contact us if you have a query.
As always, thank you for taking the time to catch up on my thinking.
A technical analysis term used to describe a chart formation in which a stock's price:
1. Rises to a peak and subsequently declines.
2. Then, the price rises above the former peak and again declines.
3. And finally, rises again, but not to the second peak, and declines once more.
The first and third peaks are shoulders, and the second peak forms the head.