Friday we broke down the key level at 1.1000. It was the last sign for me that we are entering into the panic selling stage next week. EurUsd is finishing its intermediate cycle next week.
The panic selling will be triggered as soon as we break 1.0910. ( This is the Brexit low - lot of cycle trader thought this is the bottom but that was too early ) We will have a steep decline to 1.07-1.06 - I can't tell how deep right now -and I will be looking for a reversal on the 4 hrs chart. This decline will last for only a few days and will give us a perfect buying opportunity as the Euro starts to rally against the dollar.
We will be breaking 1.15 this year in EUrUsd .
I set this trade as a long trade though I will not enter at the beginning of next week only after the FOMC meeting
I want to prepare you for this longer term long trade. I will post a 4 hrs chart when I enter the long trade.
The panic selling could be very powerful - especially if we get a rate hike on Wednesday- one could also trade that in a short trade at the beginning of next week. It might give 2-300 pips. I'm not going to play that because I'm not sure we can get 2-300 pips maybe only 50-100 pips.
I would like to concentrate on the long trade with a very good entry point.
Other than that, listen what news and uber analysts are saying, so you can lose your money while hedge funds can take action!