EURUSD update
update of my EURUSD tradeplan:
The Shoulder-Head-Shoulder pattern seems activated if we see a clear candle close below the neckline. This will result in the scenario of an A-B-C correction that might unfold in the shape of a harmonic BAT pattern.
If we use classical technical analysis patterns like the Shoulder-Head-Shoulder pattern, we should be looking for the length of the 'head-neckline' to project our target of the Shoulder-Head-Shoulder pattern.
Price should in that case reach the 1.057 zone which would also be the D point of the harmonic BAT.
I personally don't trade harmonic patterns but use them as an indication, that said BAT patterns are my favorite 'indications' due to the incredible Risk/Reward potential when they occur at significant lows/highs which in this case might very well happen.
The safest short entry with great Risk/Reward would be to wait for a pullback and retest of the neckline and enter short after a lower time frame trade signal like hidden bearish divergence. However the risk is to miss this short all together. But this depends on your trading style.
After this expected wave B lower I still favor an impulsive rally for the Euro.
The Shoulder-Head-Shoulder pattern seems activated if we see a clear candle close below the neckline. This will result in the scenario of an A-B-C correction that might unfold in the shape of a harmonic BAT pattern.
If we use classical technical analysis patterns like the Shoulder-Head-Shoulder pattern, we should be looking for the length of the 'head-neckline' to project our target of the Shoulder-Head-Shoulder pattern.
Price should in that case reach the 1.057 zone which would also be the D point of the harmonic BAT.
I personally don't trade harmonic patterns but use them as an indication, that said BAT patterns are my favorite 'indications' due to the incredible Risk/Reward potential when they occur at significant lows/highs which in this case might very well happen.
The safest short entry with great Risk/Reward would be to wait for a pullback and retest of the neckline and enter short after a lower time frame trade signal like hidden bearish divergence. However the risk is to miss this short all together. But this depends on your trading style.
After this expected wave B lower I still favor an impulsive rally for the Euro.
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