The Euro has taken a large dump recently and profit taking is about to set it. We have oscillator confirmation on the H1 and H4 timeframes as well as price reversing from the bottom Bollinger Band. Price is at a major demand level as this bullish Bat formed perfectly within a range. With the the Roy Moore vote today, tax reform in sights and huge bullish pressure on the USD vs all other currencies, we can expect investors to be dumping safe havens such as precious metals effecting the Australian dollar as gold is one of Australias major exports.
Not only this, but, with Bitcoin becoming a new safe haven and acting like gold, investors from across the globe have been choosing Bitcoin and cryptocurrency as a safe haven over traditional safe havens like precious metals. This is also negatively effecting gold and as tax reform and Bitcoin gain steam, gold, silver and precious metals have been at extreme lows. If you take a look at the graph, you will notice the Doji which formed at the PRZ as well as this bullish Bat forming at the bottom of this range. This demand level has been well respected in the past and my my risk management of 2:1 fits directly with the trade.
My stop loss is placed below the major low of the bearish swing with my profit target at the 23.6% retracement of the C-D leg of the bullish Bat. The Euro being oversold dramatically will attract buyers and short sellers are running out of steam. This harmonic pattern converges directly in confluence with a major trend line which has been respected and with Australia coming out with less than par economic data Monday and forecasts and consensus data showing weaker readings for todays economic releases, this is inline with my trade idea supporting on all levels.
The recent COT report is also inline with this data and this trade is with the overall trend bias further confirming my trade. As I enter my long position, I will be tracking price closely and verifying the reversal only to take profit within 30 pips with a 15 pip stop loss. My take profit target is within the 20-period moving average and also lined up exactly with a major supply level insuring that my take profit will be hit before a bearish reversal. Stay tuned.
Not only this, but, with Bitcoin becoming a new safe haven and acting like gold, investors from across the globe have been choosing Bitcoin and cryptocurrency as a safe haven over traditional safe havens like precious metals. This is also negatively effecting gold and as tax reform and Bitcoin gain steam, gold, silver and precious metals have been at extreme lows. If you take a look at the graph, you will notice the Doji which formed at the PRZ as well as this bullish Bat forming at the bottom of this range. This demand level has been well respected in the past and my my risk management of 2:1 fits directly with the trade.
My stop loss is placed below the major low of the bearish swing with my profit target at the 23.6% retracement of the C-D leg of the bullish Bat. The Euro being oversold dramatically will attract buyers and short sellers are running out of steam. This harmonic pattern converges directly in confluence with a major trend line which has been respected and with Australia coming out with less than par economic data Monday and forecasts and consensus data showing weaker readings for todays economic releases, this is inline with my trade idea supporting on all levels.
The recent COT report is also inline with this data and this trade is with the overall trend bias further confirming my trade. As I enter my long position, I will be tracking price closely and verifying the reversal only to take profit within 30 pips with a 15 pip stop loss. My take profit target is within the 20-period moving average and also lined up exactly with a major supply level insuring that my take profit will be hit before a bearish reversal. Stay tuned.