At the time of publishing my last chart and subsequent update to this pair, where I suggested possible significant low to form did not materialise.
Due to the nature of decline following ECB's QE announcement, it seems to be still in wave 3 decline. Wave 3 often extends and are very strong. This is what appears to have happen, where the complete cycle was expected to end it actually gathered momentum to the downside.
This has called for a complete review and now feel that potential downside could continue for a some time.
Within the overall bearish cycle, we are now approaching possible termination of wave iii of 3, around 0.72 where a wave iv of 3 could develop offering short term opportunity to go long.
However, a better trade would be for the retracement to complete when a short trade could be planned around 0.76 with downside target of 0.71 or lower for completion of wave 3 in the vicinity of some fib confluences and previous area of resistance which could now turn into potentials support (see monthly chart the details)
As always, do your own analysis for your trade requirement. Select to follow me and the chart for notification of future updates. If you like the analysis then please indicate this by thumbs up, comments and sharing with others. If you have an alternative idea then please share for all to learn from.
Thank you for taking the time to read my analysis.
DanV
danv-charting.com
Due to the nature of decline following ECB's QE announcement, it seems to be still in wave 3 decline. Wave 3 often extends and are very strong. This is what appears to have happen, where the complete cycle was expected to end it actually gathered momentum to the downside.
This has called for a complete review and now feel that potential downside could continue for a some time.
Within the overall bearish cycle, we are now approaching possible termination of wave iii of 3, around 0.72 where a wave iv of 3 could develop offering short term opportunity to go long.
However, a better trade would be for the retracement to complete when a short trade could be planned around 0.76 with downside target of 0.71 or lower for completion of wave 3 in the vicinity of some fib confluences and previous area of resistance which could now turn into potentials support (see monthly chart the details)
As always, do your own analysis for your trade requirement. Select to follow me and the chart for notification of future updates. If you like the analysis then please indicate this by thumbs up, comments and sharing with others. If you have an alternative idea then please share for all to learn from.
Thank you for taking the time to read my analysis.
DanV
danv-charting.com
