Hey all! What we can see here is a potential three drives pattern forming on EURUSD. What tipped me off about this particular pair is the fact that the second drive featured a bullish move that hit the 1.272 retracement of the first drive almost perfectly (indicated by the orange arrow). So what we can expect to see is the third drive to hit the 1.272 retracement of the second drive - as per the definition of the 3 drives pattern. I've been expecting this pattern ever since the price hit the 1.09071 mark, and the drop in price from the 27th of March onward has given me more confidence to pursue this potential idea.
You can try and catch the third drive up with a very aggressive entry but the structure always has a chance to change on a dime - especially given the dollar's recent unpredictability. The more conservative play would be to wait until the price hits 1.09791 and then signs of a retracement. Another reason to stick to the conservative play would be the fact that the price might even hit the 1.618 retracement (unlikely but not unheard of) and then come down to about the 1.06342 level.
Conservative Setup:
Entry: 1.09585
TP: 1.05874
SL: 1.09796
Aggressive Setup:
Entry: 1.06844
TP: 1.09763
SL: 1.06369
Always take the necessary precautions when trading! Good luck!
You can try and catch the third drive up with a very aggressive entry but the structure always has a chance to change on a dime - especially given the dollar's recent unpredictability. The more conservative play would be to wait until the price hits 1.09791 and then signs of a retracement. Another reason to stick to the conservative play would be the fact that the price might even hit the 1.618 retracement (unlikely but not unheard of) and then come down to about the 1.06342 level.
Conservative Setup:
Entry: 1.09585
TP: 1.05874
SL: 1.09796
Aggressive Setup:
Entry: 1.06844
TP: 1.09763
SL: 1.06369
Always take the necessary precautions when trading! Good luck!
Comment:
The price has dropped enough for me to change the 2nd retracement leg's position. This change does not necessarily negate the potential of this 3 drives pattern, but I would recommend the conservative play even more now.
Comment:
Neutral on this pair for now; Both EUR and USD are bearish.
Comment:
Still monitoring this pair; Pattern has not been negated yet.
Still monitoring this pair; Pattern has not been negated yet.
Trade active
Comment:
Still looking great! The short should be coming soon.
Trade closed: target reached
Trade active:
2nd trade active
Comment:
Bearish fall is being observed very well so far