This pair have fallen in a 5 wave structure and it seems that the bearish carnage is over, at least temporarily. There are many reasons to go long here:
- A huge Bullish Inverted AB=CD pattern, starting from 9/6 high - A huge Bullish Shark pattern starting from 16/7 low - Bottom area of a 50%-pitchfork - Projected End-Of-Wave 5 area
Since the decline has been in 5 waves, a sustained rise above 13/10 high is ruled out, at least for now. But since the major swing low is just a few pips below us, going long from here hoping to catch a decent upward retracement looks attractive.
Being far away from the recent swing high, using a 1-Bar-High Breakout tactic for entry is recommended. For now, this level is 0.7080 which is 16/11 high.
As long as price trades above 0.6936, this scenario and the related entry tactic remains valid.
Good luck,
Ali Sharif Azadeh, CFTe
Comment
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Adjust the entry point. Break up of yesterday's high at 0.7033 is the new entry point.