EURUSD, 3 reasons why it might reverse here ? Long

Euro Fx/U.S. DollarFXCM

Description

⋅ Feb 27, 2015 8:13 AM

After the steep decline yesterday I was wondering why this pair stopped where it did and I found 3 reasons for it.

- A bullish Gartley pattern
- A bullish Butterfly pattern where D is the 1.618 extension of AB
- A previous gap that can act as support

Furthermore, the Fib extensions for both patterns (1.272 for Gartley and 1.618 for Butterfly align nicely)

Comments

JazzForex

⋅ Feb 27, 2015 8:20 AM

I concur with the Gartley. I am watching it as well: looks like price is going for a retest of the potential reversal zone.

Nico.Muselle

⋅ Feb 27, 2015 8:23 AM

A retest of the PRZ would be a good signal to enter long, adding an additional reason to the list ! :)

TradeYodha

⋅ Mar 1, 2015 9:39 AM

I have been watching it too. There may be 2 shorting zones nowtradingview.com/v/GmPpXRPo/

JosephNeuman

⋅ Feb 28, 2015 12:41 AM

I didn't understand. So EUR/USD will be 1,27 or 1,61 ?

Nico.Muselle

⋅ Mar 1, 2015 3:35 PM

No, 1.272 and 1.618 are fibonacci extensions which are used to determine the completion of the different patterns.

john.norcutt

⋅ Feb 27, 2015 11:43 AM

Reversal was @ the 78.6 gartley level and the FB Reversal level of 112.8% at around 9 a.m. Today. Just touched the 1.414 level on the 5 minute charts and is pulling back

Nico.Muselle

⋅ Feb 27, 2015 11:47 AM

If I draw in the .786 of the Gartley it's a bit lower and this was never reached imho. Mind sharing the chart ?

CryptoPAMM

⋅ Feb 27, 2015 11:11 AM

Yes of course, I am talking about most recent correlation, where was EUR was driving

CryptoPAMM

⋅ Feb 27, 2015 10:36 AM

Hey Nico,

Just wanted to share my view on EUR, while EURUSD and EURCAD have been quite correlated, here is how I see it tradingview.com/v/7gmdQqhP/

Nico.Muselle

⋅ Feb 27, 2015 10:48 AM

They might be correlating to some extent, but CAD is highly influenced by OIL prices as well while this is less so for USD ...