The 0.886 level held beautifully on Friday's downside move, as such has potentially completed a larger harmonic BC leg.
Current price action can be seen as very similar to the last Euro rally from the 1.1800 - 1.4900 move.
Bearing in mind the similarity, I have included a crab pattern to account for any abnormal gains towards exhaustive price levels. The CD leg for the crab would mimic the previous rally closely, and would line the Euro up nicely with the much larger downtrend.
As I have stated previously, on another chart, the 0.786/0.886 levels were prime regions for scaling into increasing larger long positions.
There may still be room for downside probes but with the midweek FOMC speech from Big Bad Ben, short covering may prove a necessity for large funds to avoid being wrong footed/overly exposed to dollars. Price needs to clear the 1.2902 level for the CD leg to be considered constructive and find more buyers.
Note these patterns should really be traded at point D for maximum accuracy/trade success.
Current price action can be seen as very similar to the last Euro rally from the 1.1800 - 1.4900 move.
Bearing in mind the similarity, I have included a crab pattern to account for any abnormal gains towards exhaustive price levels. The CD leg for the crab would mimic the previous rally closely, and would line the Euro up nicely with the much larger downtrend.
As I have stated previously, on another chart, the 0.786/0.886 levels were prime regions for scaling into increasing larger long positions.
There may still be room for downside probes but with the midweek FOMC speech from Big Bad Ben, short covering may prove a necessity for large funds to avoid being wrong footed/overly exposed to dollars. Price needs to clear the 1.2902 level for the CD leg to be considered constructive and find more buyers.
Note these patterns should really be traded at point D for maximum accuracy/trade success.