Price has reached and triggered the AB=CD pattern. The
PA at D-level was more in line with the normal which suggest
a minmum target at 1,5010 level which coincide with the yet
un retested horizontal neckline of the large Head & Shoulders
pattern. The Monthly PP stands slightly higher than this target
at around 1,5045. Thus, even if it is not welcomed by bears
trading the H & S pattern, it would still be quite normal PA
if price reach 1,5125.
Only IF price breaches this level and move higher (above
Monthly PP) the whole setup comes into question. Scalping on
the long side, with the AB-CD pattern is the preferred strategy
right now. The minimum target of the whole ABCD stands at
1,5125 level, which would still beacceptable for the H & S
if it is strongly rejected and price returns right back.
A breaching of 1,4685 level will move the D-point downward
to the 127 or 161 extension (not marked in this chart).
Also, the D-point was reached with distinct bullish divergence
on MACD, which also adds to the upward potential.
PA at D-level was more in line with the normal which suggest
a minmum target at 1,5010 level which coincide with the yet
un retested horizontal neckline of the large Head & Shoulders
pattern. The Monthly PP stands slightly higher than this target
at around 1,5045. Thus, even if it is not welcomed by bears
trading the H & S pattern, it would still be quite normal PA
if price reach 1,5125.
Only IF price breaches this level and move higher (above
Monthly PP) the whole setup comes into question. Scalping on
the long side, with the AB-CD pattern is the preferred strategy
right now. The minimum target of the whole ABCD stands at
1,5125 level, which would still beacceptable for the H & S
if it is strongly rejected and price returns right back.
A breaching of 1,4685 level will move the D-point downward
to the 127 or 161 extension (not marked in this chart).
Also, the D-point was reached with distinct bullish divergence
on MACD, which also adds to the upward potential.