I have been following the corrective pattern on the EURUSD
chart for some time. I still have the view that this pattern is playing out. We have a deep retrace of a smaller BC
leg (grey ABCD
) which could reach the 70% retrace of the AB leg by the 20th. After this we could expect the CD to complete at a 127% extension at the beginning of August. For the larger ABCD pattern
to complete at E on the larger contracting triangle I would then expect a smaller retrace of the larger ABCD
(Lime coloured ABCD
) and longer extension. However, the market will do what the market will do. A break of the corrective structure to the downside will invalidate this idea.