Since that spike up back on Dec. 3rd of last year, this pair has just been consolidating. It appears to me that this whole sideways consolidation has been one big pattern setting up. I have marked the corrective waves of this correction on the chart as a big WXY pattern that may have ended recently and then the waves (1) and (2) of the next trend up have been established. In wave counting, one of the main objectives is to identity possible impulse waves and trade those. Especially the wave 3's. That might have just happened.
There are 2 POTENTIAL patterns of consequence here: a and a bat. Both of which this possible new uptrend may be tracing out their respective CD legs. As mentioned above, there seems to be a reverse pattern that has setup already with both the left and right shoulders completed. Symmetry in patterns if often sought out. Especially in patterrns like the pattern. When there is symmetry, the pattern is usually more powerful. In this case, you can see clear symmetry between the left and right shoulders.
WHAT TO EXPECT
At the very least, prices have been trading inside a solid channel consolidation zone. And it has hit the bottom of that zone already. So I would expect to see it trade back up to the top at least.
MY TRADE PLAN
I'm LONG this pair and expecting a nice runup to eventually complete those patterns. My stops are below the channel lows so that if I get stopped out, then it means it is probably breaking to the downside.
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Good Analysis, with very good points.But the Bat should be extended to a higher level (ex. 1.1400 or so)!
The expectation are high for this currency especially in the next 2-3 months!