EverythingForex

EURUSD: After The Fall...Now What?

FX:EURUSD   Euro Fx/U.S. Dollar
2780 18 60
a year ago
Two weeks ago, I posted this chart and predicted that this pair would drop. I feel sorry for those that kept trying to tell me that it was DEFINITELY going up! Especially that guy who argued with me about it and even got angry with me! Hope you didn't bet your house on it, buddy! Here was the chart I posted:
TRADE: EURUSD: <span data-href="idea-custom-link" data-href-idea-custom-link="mailto:SELL@1.14400" rel="nofollow noopener noreferrer" target="_blank">SELL@1.14400</span> Too Much Confluence To List....
While the patterns didn't quite work out, my overall wave count and the ending diagonal I had shown worked out to PERFECTION! It 's not always necessary for patterns to work out in order for a trade to work. As I've said before and continue to say, patterns are only a part of my overall strategy and I don't completely trade just on patterns.

WAVE COUNT
So what is happening now? In the MAIN CHART above, I have removed the "failed" patterns and left the working patterns in place. Right now, prices have dropped and filled a "Gartley" pattern that I had posted about 2 weeks ago. From this point, I am expecting that prices will now retrace back up somewhat in a bounce from the recent sudden drop which is indicative of a wave 3 move. In fact, I see that recent drop as a wave ( iii             ) of 3 down. So now what we should be seeing is a wave (iv) of 3 retrace up. How far up? It could retrace a good bit as is usual after a sudden and explosive wave ( iii             ) drop. Also, if my wave count is correct, the wave (ii) was brief and sideways. Which indicates that wave (iv) should be lengthy and most likely a zigzag pattern.

HARMOINC PATTERNS
Tthere is a very clear and valid butterfly pattern that is close to completion. I do believe that prices will continue to drop and fill that butterfly pattern though.But before we see this butterfly complete, we should see a bounce and then after the wave (iv) bounce is done, then a wave (v) should go down and complete the butterfly . From there, I would expect a larger bounce in a wave 4 up.. But we'll deal with that when the time comes.

MY TRADE PLAN
If I see some more bullish PA to confirm that prices will indeed move up, then I may look to get LONG to catch this retrace. But for now, I'll just be watching. If I do not get the bullish price action confirmation, I'll be content to sit and watch for this retrace to complete and then look for a good place to get SHORT.

*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I can know my post was helpful to you. As always, any CONSTRUCTIVE comments are welcome whether AGREE or DISAGREE.
a year ago
Comment: I wish to remind anyone who sees this post that there is still a SOLID downtrend in place and that taking any countertrend trade here is very risky. This would be trading a wave iv and those are very difficult to predict how they will unfold. This is why I am NOT taking any LONG trade on this market right now and will need some SOLID bullish PA for me to do so. Otherwise, as I said in my post, I am content to just sit and watch and wait for a chance to get SHORT again!
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BuySellBuySell
a year ago
Nice work!
Reply
EverythingForex PRO BuySellBuySell
a year ago
Thanks
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Hi, nice analysis as usual. Are you still over all bullish on this pair and commodities as well ?
Thanks, Vince.
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EverythingForex PRO Dotheopposite666
a year ago
Yes, overall still bullish. I don't believe this downtrend is a resumption of the overall trend. Correction is not done.
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One can see that you put a lot of effort and knowledge into your analysis. I agree to your idea, yet I cannot take this trade because I'm involved also into EURJPY long now, this trade would only push my exposure up. But good luck!
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EverythingForex PRO Koryphaeen
a year ago
Good, I'm glad to see you are sticking to your trading plan and not overexposing yourself. It's important to stick to your own trading rules in order to be a successful trader.
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good work, thanks for taking the time to share it, much appreciated.
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EverythingForex PRO NidalDarawsheh
a year ago
YW.
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I wish to remind anyone who sees this post that there is still a SOLID downtrend in place and that taking any countertrend trade here is very risky. This would be trading a wave iv and those are very difficult to predict how they will unfold. This is why I am NOT taking any LONG trade on this market right now and will need some SOLID bullish PA for me to do so. Otherwise, as I said in my post, I am content to just sit and watch and wait for a chance to get SHORT again!
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I agree. Wave 4 is hard to trade so one needs the right strategy to do so.
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MaryJane
a year ago
nice one....
snapshot
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MaryJane MaryJane
a year ago
The Draghi-hammer! Former analysis is abundantly valid!

There is nothing more to add! The Pair is bearish furthermore!

former Analysis:
Longterm View: LongTerm Swing-Dynamic vs. MidTerm Bearish Flag
When we have a look at the longterm Chart we see a clear and very wide downchannel. At the beginning of 2015 we have kissed the downtrend channels bottom @ 1,04. From that Level on we started a Rebound nearly till the Minimum correction fibo (38,2) . here is also based the EMA 200 as a resist.
Now the Pair is forming a bearish flag! (blue). This bearish flag will generate a TP at the downside @ below the parity @ 0,965 if it will be triggered.

The cyclical /-or longterm swingview will generate a longterm tp @ the downtrendchannels upper edge @ 1,33! ( Magenta "3"?). On it s way up to that cyclical target several resist zones are based:
-EMA 200: 1,135
-0,38 fibo: 1,18
-0,5 fibo: 1,22
-0,618 fibo: 1,26
-Resistance tone formed of former lows between 1,2-1,25

Last but not least - here is the pullback!
Last but not least - here is the pullback!
+1 Reply
MaryJane
a year ago
i love your wave countings!
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MaryJane
a year ago
This is my latest view:
EURUSD short short short
snapshot

Draghi invited Investors to hold on their short strategies - me included :-) My Analysis remains short. If we trade below the sma 200 and the flags bottom edge @ 1.105 the next Logical/technical TP would be 1.04. Prices below that Level will generate a Little selloff.
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Vamonosky305
a year ago
As always. You Rock!!!
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EverythingForex PRO Vamonosky305
a year ago
thanks for the compliment!
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Jebanese
a year ago
Sir,
Your strategies are very powerful. Believing your idea with discipline is important. Thanks sir.
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pfffff
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