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 to account for any abnormal gains towards exhaustive price levels. The CD leg for the 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.
Stop 2 surviving for now.
CD leg struggled to clear the 1.2900/2 area.
Trade has been profitable despite the deteriorating leg here.
Will attempt small longs(1/4 normal size) as the swing low is approached based on fib levels 0.786/0.886 of the last climb (1.2795-1.2900) and bullish candle stick patterns/price rejection.
Stops will be 5-8 pips below the swing low if price turns constructive on the dips.
Trade now looks favourable to attack downside targets following a retrace/pullback.
Larger Harmonic CD leg may fail as the established AB=CD pattern pushes towards the 1.28 handle. Spot needs to close above 1.2902 for CD leg to remain constructive and is now looking unlikely.