To better understand the wave count that you are seeing in the chart above, take a look at this below:
In this , what i am seeing is that there is a WXY pattern forming with the W and X waves already done and now the Y pattern is forming in a ABC pattern. Within this ABC , this recent surprisingly strong move down was most likely a wave c of the (b) of the ABC . Wave c's are the corrective equivalent of wave 3's and the strength of this wave c is reminiscent of a wave 3. It is a 5-wave wave c with it's wave (v) of c possibly now coming to an end as shown in the 4HR Chart above.
There are 2 COMPLETED Patterns here that prices are now in the PRZ of. There is a COMPLETED and a COMPLETED Bat. Both patterns are signaling that prices should be turning and heading back up. I have also placed a POSSIBLE on the chart BUT prices WILL need to head down more in order for this POSSIBLE to become a POTENTIAL and come into play. Prices can go as low as 0.68834 and this will still be valid. But prices DO have to get to 0,69184 to become valid. That level contains a strong fib level including the golden ration fib extension.
Now, if this is indeed going to be a wave (c) of that ABC up, then it has a LONG WAY to go! There are 2 more patterns that are for the LONG TERM. A Potential and a POTENTIAL BAT. But that is for considering later.
WHAT TO LOOK FOR
It is trying to establish a low right now. So look for it to head back down again and re-challenge the recent low at0.69269. If it does retest it and that low does hold, then look for a BUY. It that low does not hold and prices break it, then look for another small push down probably into the 0.60200 - 0.69100 region before looking for another BUY setup. Should prices break below the CRITICAL Major SR Structure at 0.69070, then likely it will head to 0.69000.
MY TRADE PLAN
I am looking for a good setup to go LONG on this pair. If this is to be the wave (c) of the ABC , then this is the MASSIVE MOVE UP that I had been touting since 2 months ago! And if it is, I am looking at possibly +1000's of pips possible in this move.
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