So here is the deal. On 4h we can see a nice Gartley pattern that has a narrow PRZ (Potential Reversal Zone) right at the .786 projection. The AB=CD completes right next to the D point I personally longed cause the price action in the PRZ shows exhausted bears.
More interesting about this short term reversal is that it complements one of my ideas pretty well. As you can see the pattern completes right on this green line which is .618 retracement of the leg that started forming back in 2000. The euro was launched and rallied until 2008 when the well known financial crysis had its top. Eversince the price has been in a downtrend. And now we get to the point where this 15 year move meets its .618 retracement. It also forms an advanced pattern which has a construction accepted by Larry Pesavento according to his book. By making this reversal the price action for the past month is getting a higher low which is a sign for the fresh start of an uptrend.
Everything is only hypothesis but there are many clues aligning together for the final conclusion.
Check the monthly chart here
to see the big picture im talking about.
Update 1: The monthly chart's red line isnt exact calculated but the green one on this chart is.
Peace, traders.
More interesting about this short term reversal is that it complements one of my ideas pretty well. As you can see the pattern completes right on this green line which is .618 retracement of the leg that started forming back in 2000. The euro was launched and rallied until 2008 when the well known financial crysis had its top. Eversince the price has been in a downtrend. And now we get to the point where this 15 year move meets its .618 retracement. It also forms an advanced pattern which has a construction accepted by Larry Pesavento according to his book. By making this reversal the price action for the past month is getting a higher low which is a sign for the fresh start of an uptrend.
Everything is only hypothesis but there are many clues aligning together for the final conclusion.
Check the monthly chart here
Update 1: The monthly chart's red line isnt exact calculated but the green one on this chart is.
Peace, traders.