Here we have the EURUSD in a clear downtrend and it is probably going to head down to the bottom of the lime green channel. Here we still can not enter short or long. Here'll be both the long and short scenarios:
If the market FAILS to break the blue area marked Level "A", it will most likely head down and triggers a sell.
HOWEVER the market is at the end of a minor 5 wave impulse down (which indicates a short ABC reversal). It is also at the end of a 4 hour wave 3 which would also suggest a corrective wave 4. If Level "A" is broken towards the upside, it can be a but signal.
Correct me if u think I am wrong in the comments below, I appreciate it.
Happy Trading!
If the market FAILS to break the blue area marked Level "A", it will most likely head down and triggers a sell.
HOWEVER the market is at the end of a minor 5 wave impulse down (which indicates a short ABC reversal). It is also at the end of a 4 hour wave 3 which would also suggest a corrective wave 4. If Level "A" is broken towards the upside, it can be a but signal.
Correct me if u think I am wrong in the comments below, I appreciate it.
Happy Trading!