EURUSD has reached its target price. My previous analysis followed exactly the expected movement of OANDA:EURUSD. Although the movement may slow down at these levels and turn into a correction phase, I expect a further decline in the longer term. However, I will be trading LONG positions in intraday trading in the coming days. My assumption is that a corrective rise of close to 200 pips could develop. The yellow squares in the chart represent corrective wave sequences. I am currently waiting for a similar corrective wave sequence to form. The two local points of the wave are the white dashed lines, which are ATR axes, defined by the edges of the two channels. In other words, I expect to test the corrective back-test of this channel. I do not expect a sustained trend reversal.
Great review of the market. Does anyone know or suspect what is the final support?
meszaros
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@Josue_dlt, I follow corrective turns with intraday trading. I set the STOP level according to their rules. One of the best strategies : I subtract the difference between the previous day's maximum level and the previous day's closing level from the previous day's closing price level. I place the STOP level below the resulting value. This is also shown in the chart.
Josue_dlt
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@meszaros, Very interesting. I will add this to my chart reading. Thank you for taking the time to reply.
pipo99
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@meszaros sir., with the Stop loss strategy. Looks like a risk of 1-2 profit? As shown on your chart. Or profit should be the wave sequence you expect to the upside
meszaros
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@pipo99, I planned the trade with a target price of 1.14687 (the top of the corrective wave) Based on my current entry, I have 4.57 RR .
GrumpyOnion007
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Great call - it's hard to see any hope for a sustained Euro rise at present, fundamentally or technically! Here's my chart
meszaros
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@GrumpyOnion007, Again, a great analysis. Thanks for sharing. 👍
meszaros
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@GrumpyOnion007, The euro is technically oversold against the dollar. Therefore, I suspect that the current level could be suitable for a few days of upward corrective movement. I expect the euro to continue weakening in the medium term. In my opinion, parity could be broken early next year.
GrumpyOnion007
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@meszaros, Agreed - I think we should see a countertrend 'wave 4' over the next week or so, which in theory should end below the 11525 area.. Thereafter, as you say, further weakening to complete the 5-wave decline. This could all tie in nicely with the oil price rising - fundamentally, the dollar should remain strong if oil continues to rise.