Price has stalled by the completion point of AB=CD of
larger upward move, consolidated and is now trying to
breach this level without any meaningful retracement
(to any pattern targets). The latter part of the CD had strong
momentum, yet the early part was slow, all in all resulting
in a slower/weaker CD leg. IF price close above the
0,9310 level and shows continuation of this breakout,
the next, extended D-point is 127ext right at Monthly R1
at 0,9425 or the 161ext at 0,9570 in confluence with
Monthly R2 at 0,9563. However, a more cautious approach
to trade this breakout is to wait for a bounce off of the
upper Pitchfork channel and weekly R2. A failed breakout
may accelerate price move towards first target of the
AB=CD pattern. Strategy, wait for confirmation of breakout
and buy a bounce towards extended D-point. Sell at extended
D-points after entering signal. One can argue that the D-point
hasn't been traded until today on the pip. This might be a case
of trickery when market just slightly miss a completion and only
after hitting it starts the retracement. Time will tell here.
larger upward move, consolidated and is now trying to
breach this level without any meaningful retracement
(to any pattern targets). The latter part of the CD had strong
momentum, yet the early part was slow, all in all resulting
in a slower/weaker CD leg. IF price close above the
0,9310 level and shows continuation of this breakout,
the next, extended D-point is 127ext right at Monthly R1
at 0,9425 or the 161ext at 0,9570 in confluence with
Monthly R2 at 0,9563. However, a more cautious approach
to trade this breakout is to wait for a bounce off of the
upper Pitchfork channel and weekly R2. A failed breakout
may accelerate price move towards first target of the
AB=CD pattern. Strategy, wait for confirmation of breakout
and buy a bounce towards extended D-point. Sell at extended
D-points after entering signal. One can argue that the D-point
hasn't been traded until today on the pip. This might be a case
of trickery when market just slightly miss a completion and only
after hitting it starts the retracement. Time will tell here.