Please note, this is a general market outlook because it presents a very unique situation, in which is correlated between multiple time frames. Given the complexity of this trade set up, there is no "right time" to enter because depending on what time frame you're looking at, it could be right now, next week or next month.
On pretty much every time frame, short, mid and long term, there's noticeable price compression which usually indicates a pending drop based on current price action. Put simply, there's a rising wedge that's been developing on EUR/USD for quite some time now. So the question is, when is price going to move out of this range and make a big move? Also, will price move as indicated or will it test our patience and go up first (to hunt stops) before the big drop?
The bottom black trend line is the biggest line in the sand, the bottom red and blue trend lines are short term targets and possible support/bounce points but ultimately, a bigger drop should not be out of the ordinary (low 1.3X region).
Furthermore, upside risk is not limited either, do not be fooled and think the 1.4000 level will hold indefinitely because when it breaks, price can easily move 100-200 pips above it. Reason being is because stop levels for position traders are wider around big levels, so stops will run up for quite a bit.
On pretty much every time frame, short, mid and long term, there's noticeable price compression which usually indicates a pending drop based on current price action. Put simply, there's a rising wedge that's been developing on EUR/USD for quite some time now. So the question is, when is price going to move out of this range and make a big move? Also, will price move as indicated or will it test our patience and go up first (to hunt stops) before the big drop?
The bottom black trend line is the biggest line in the sand, the bottom red and blue trend lines are short term targets and possible support/bounce points but ultimately, a bigger drop should not be out of the ordinary (low 1.3X region).
Furthermore, upside risk is not limited either, do not be fooled and think the 1.4000 level will hold indefinitely because when it breaks, price can easily move 100-200 pips above it. Reason being is because stop levels for position traders are wider around big levels, so stops will run up for quite a bit.