With the ECB event risk Thursday morning, let's take a step back and see what the higher probability patterns are.
The preferred patterns being watched are bullish in nature. Both bullish patterns suggest we are in the 'C' wave of a large flat correction that began in March 2015.
The March 24 low is the key level for the immediate bullish price action. A move below 1.1140 would cause us to reconsider.
FXCMSSI (Sentiment) is favoring bulls. The current reading is -1.60 which means there are more traders positioned to the short side than to the long side. This tool is used as a contrarian type indicator which provides a bullish signal.
You can see how traders are positioned through the live FXCMSSI feed.
Though we've focused on the bullish patterns, prices can break lower and that would temporarily pause the bullish case. Longer term we are eyeballing higher prices in EUR/USD.
Good luck!
The preferred patterns being watched are bullish in nature. Both bullish patterns suggest we are in the 'C' wave of a large flat correction that began in March 2015.
The March 24 low is the key level for the immediate bullish price action. A move below 1.1140 would cause us to reconsider.
FXCMSSI (Sentiment) is favoring bulls. The current reading is -1.60 which means there are more traders positioned to the short side than to the long side. This tool is used as a contrarian type indicator which provides a bullish signal.
You can see how traders are positioned through the live FXCMSSI feed.
Though we've focused on the bullish patterns, prices can break lower and that would temporarily pause the bullish case. Longer term we are eyeballing higher prices in EUR/USD.
Good luck!
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
SSI has dropped further to -1.81 which hints to a low looming nearby.
See the live SSI data here - www.dailyfx.com/sentiment?utm_source...