Even though I have projected targets around parity for the EUR/USD, I expect the current rally to continue for at least another day or so. I want to go short after the daily stochastic hooks down from above 75, but that will probably require price to form what could be an Elliott Wave expanded flat. If that scenario develops, I would expect the C-wave rally to end somewhere above 1.0767, as shown on the 6-hour chart (I wouldn't expect much more than that). With the 6-hour indicators displaying acceleration to the upside, this seems the likeliest scenario.
It's also possible that we could move sideways, perhaps in a triangle; if that's the case, I'd be willing to enter short after a daily stochastic hook down around the 65 level, especially if the daily MACD stays below its signal line. This scenario could take a bit longer to play out...
In either case, I'll also look for %K, %D and MACD to be moving down on the 6-hour chart to give me confirmation, and I'll then wait for a pullback to the upside on a 90-minute chart to enter (if I don't get the pullback to my limit order, I'll hold my nose and enter on a break below the nearest 90-minute candle if it's not too big of a range).
Comments?
It's also possible that we could move sideways, perhaps in a triangle; if that's the case, I'd be willing to enter short after a daily stochastic hook down around the 65 level, especially if the daily MACD stays below its signal line. This scenario could take a bit longer to play out...
In either case, I'll also look for %K, %D and MACD to be moving down on the 6-hour chart to give me confirmation, and I'll then wait for a pullback to the upside on a 90-minute chart to enter (if I don't get the pullback to my limit order, I'll hold my nose and enter on a break below the nearest 90-minute candle if it's not too big of a range).
Comments?