This pair is forming a very solid ABCD pattern
as point C was put in place very decisively. The chart is showing the ABCD pattern
overlaid with a Fibonacci Extension
. Our projection is for this pair to make a run towards the 61.8% to 76.4% Fib extensions but we wouldn't be surprised if it made a run to the 100% level as the pullback was shallow. Pullbacks that do not retrace the entire 61.8% show that buyers are eager to resume the uptrend. As you can see the C retracement was only 56.9%. As long as the bulls stay in the Euro
camp our projection could be met but as we all know the Euro
has been in a long-term bear trend.
Set your stops just below point A, we will be willing to risk down to the 1.06900 level as our algorithm is calculating 90% odds of a run higher on the daily chart