In the chart are some patterns which we could see unravelling in the next weeks(?). Please note that this is still very hypothetical since we have only completed XAB and still need CD to complete to actually get to these patterns...!
But for me it helps to get an insight on the different possibilities...
I prefer to trade based on the possible completion of one of the bats (and one possible ), keeping the other and as alternatives.
I have also included different possibilities of completion of (and alt ) patterns for the further move down to a posible C leg completion (if it comes...), this to look at possible reversal zones where direction could change from to .
The blue arrows give my preferred path and the red arrows some of the alternative paths.
The blue zones indicated in the chart are based on the levels defined by the patterns but also on previous structure to the left of this frame.
Please note that the first retracement which could start now may also turn out to go all the way up to complete a with a high C leg but this is less likely imo .
I included a combined long position for possible completion of a CD leg and a short position to trade off the completion of the bat(s). I am now looking to enter short to complete a possible C leg.
I'M CURRENTLY NOT PLACING ORDERS BASED ON THIS YET, WAITING FOR THE FOMC RATE DECISION ON THURSDAY!!
But it's good to have some important levels defined anyway! If I trade based on this I might adjust SL and TP depending on PA at that time!! I will update here if I enter a trade.
I am currently short from almot the top of today with a tight SL above that top, hoping to ride a wave down to complete a possible C point of one of the patterns. Targets are 1.5365 and 1.5210.
Up after that. If we shoot higher tomorrow I will start over with my analysis. Updated chart: