I was looking for a move towards 1.48-1.49 but we didn't see that yet. I was looking for a third leg lower in the shape of a wave C. We saw the structure break last week after the comments about a possible OPEC production cut. However I trade what I see and at the moment we see 'hidden bullish divergence' on the 1 hour time frame which is a warning. I like therefore to see what kind of consolidation will be next to determine whether this is corrective or indicate a bullish reversal. Lower time frames might present a sell trade very soon but keep an eye on this hidden divergence scenario on the 1 hr time frame when managing this trade.
Trade closed: target reached
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We hit 1.45 before we saw the Euro gain strength again. The latest update is under comments below. I'll update this pair for the bullish momentum.
Comments
TimStuyts
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The short of the beginning of the week is working out well and that hidden divergence was invalidated once price took out previous low. Added another short with stops at Break-even. Looking for 2 targets as shown by means of the arrows.
The short of the beginning of the week is working out well and that hidden divergence was invalidated once price took out previous low. Added another short with stops at Break-even. Looking for 2 targets as shown by means of the arrows.