Bullish trend continuation for the EUR/USD pair seems inevitable now. Obviously a correction stands before us,
however, there are a few critical levels that need to be held and other broken.
If price closes significantly below the trend line cross over level, roughly at 1.1820, then this would probably end
the bullish rally of the EUR/USD.
If price holds and reverses at the highlighted reversal zone, then the next target would be the 1.2034/40 level in
accordance with the projected ABCD pattern.
But I don't think we will see price penetrate through the GAP zone without some difficulty (GAP measured from close of
22.09.2017 to open of 24.09.2017.)
Ideally, to confirm that the 1.2034/40 level can become the next target, a close above the GAP zone prior to a corrective
move down would be a positive sign, because price would then more easily and swiftly penetrate through the GAP
zone en route to the mid 1.20 levels.
I personally am not going to hold trades for long periods due to market uncertainty, instead I will trade the 15 minute
charts on a daily basis until the corrective move is complete. There are still two interest rate decisions ahead, one for
the Euro and one for the USD, which will cause some volatility in the weeks to come, though more importantly, the
political situation in Germany, and until it is settled, will undoubtedly cause a lot of noise in this market.
Happy trading
however, there are a few critical levels that need to be held and other broken.
If price closes significantly below the trend line cross over level, roughly at 1.1820, then this would probably end
the bullish rally of the EUR/USD.
If price holds and reverses at the highlighted reversal zone, then the next target would be the 1.2034/40 level in
accordance with the projected ABCD pattern.
But I don't think we will see price penetrate through the GAP zone without some difficulty (GAP measured from close of
22.09.2017 to open of 24.09.2017.)
Ideally, to confirm that the 1.2034/40 level can become the next target, a close above the GAP zone prior to a corrective
move down would be a positive sign, because price would then more easily and swiftly penetrate through the GAP
zone en route to the mid 1.20 levels.
I personally am not going to hold trades for long periods due to market uncertainty, instead I will trade the 15 minute
charts on a daily basis until the corrective move is complete. There are still two interest rate decisions ahead, one for
the Euro and one for the USD, which will cause some volatility in the weeks to come, though more importantly, the
political situation in Germany, and until it is settled, will undoubtedly cause a lot of noise in this market.
Happy trading