It is over 150pips in our direction since my last publication on this pair (see link below for reference purposes); The “risk-off” situation going on globally appears to favor the US dollar as the Euro rejected the Demand zone and fell during the trading session on Friday to close below $1.17500 (making this level a Supply zone as Selling pressure increases from this area). Tendency: Downtrend ( Bearish ) Structure: Breakdown | Harmonic (AB = CD) Observation: i. The Breakdown of the $1.17500 level mid last month followed by a rejection of this level last week insinuates a risk of further decline in the coming week(s).
ii. As the selling pressure continues to accumulate around $1.17500 – chances of a Breakdown of $1.1700 (Key Level) become greater.
iii. It is worthy to note that the rejection of $1.17500 is exactly at a 61.8% retracement of AB Leg with a better chance of forming the AB = CD pattern as stated below;
iv. ABCD parameters;
a. Impulse A-to-B will be in harmony with the potential C-to-D leg.
b. The B- to-C leg is at 61.8% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 – 1.414% Fib. ext. of the A-to-B move. Trading plan: SELL confirmation with a minimum potential profit of 180 pips. Risk/Reward: 1:4 Potential Duration: 2 to 6 days NB: This speculation can be considered to make decisions on lower timeframes. Watch this space for updates as price action is been monitored. NirvanaForex
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