Reasons: 1. DXY has been incredibly weak even if FED increased interest rate 2. Price has breached two downward trend lines that I don't expect the last defence would hold today(downward trend line since April) 3. Fundamentally, Italy budget conflict has been basically solved
Plan: - Buy if 1.14000-1.14100 support holds
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1.15000 is also a great entry position to short.
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Ichimoku, Bollinger Band and RSi suggest the price has turned into downward trend again, especially the price current has breached the upward trend channel.
Yes, my old suggested possible target is now asking to face a reality as you have said - and my plans are shifting into a buy as well as we are seeing higher lows and higher highs with any dip being quickly reversed. However - Brexit may bring some volatility and I am splitting my position into 4 smaller ones and yet bigger target for each thus with TP1 - 1.15, TP2 - 1.1547 , TP3 - 1.162, TP4 - 1.171 (these are the targets I have mentioned about two weeks ago when I said that these are the targets if our shorts do not work).
Several banks also were whispering about targeting 1.18 as they were constantly mentioning 1.12 area being the current bottom.
Erland
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I believe it is worth mentioning that I have spotted a Harmonic ABCD pattern on D1 with a starting point 1.121 which hints a sell 1.15-1.1547 and on H4 another pattern suggesting a sell 1.1499-1.1532 both targeting 1.1377-1.1352. When H4 and D1 is offering bearish patterns - there is a high possibility of a last drop to get more sellers trapped at lower levels and at the same time to make buyers change their minds and give up on buy.
I do agree with buying idea but we have to let the last selloff just to get the lowest price possible for the buy. I will not be selling those two patterns, instead - waiting for the dip to buy.
zuoertai
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@Erland, Thanks for sharing your thoughts! I will stick to the plan I mentioned in this post.
Erland
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@zuoertai, to shorten my thought - I have the same plan as you (which is Plan A) - see if 1.14 support holds. My Plan B is, if 1.14 does not hold - see your chart where your yellow and blue trendlines intersect and meet yellow MA line at 1.136 - this could be a lower high point for the uptrend.
However - if 1.136 does not hold - we are not in an uptrend yet but in a bigger consolidation pattern and my targets will be 1.1330, 1.1285 and 1.1190 as mentioned before (because H4 and D1 patterns suggest that and we are still within the consolidation phase - see last 8 W1 candles).
Several banks also were whispering about targeting 1.18 as they were constantly mentioning 1.12 area being the current bottom.