This idea looks a lot like one of our recent posts we did about the USDCAD
pair. The difference about this idea though is that we have an ABCD pattern
that falls nicely into the bottom line of the descending wedge
. To be more specific about this ABCD
pattern: if you look closely to the 'C to D' part of the pattern, you'll see that point D is located at the 1.272 fibonacci extension
of the previous down move from 77.88 to 74.08. The fact that point D also falls at the bottom line of the descending wedge
makes this one pretty special and worthy posting for you guys.
We prefer setups witch technical confluences like this, because in these setups the probability of being right is greater.
ALWAYS make sure to test a strategy for yourself before you start trading it. Because when you do, you'll discover personal preferences in things such as ways to enter the trade or stoploss placement. These can be very valuable!