The way I'm seeing it is that the recent moves up was a wave (1) of a much bigger corrective wave (A) up. If it is, then what we should be seeing now and to come is a wave (2) down retracing that wave (1). Most likely down into the G-Zone retracement area at the minimum the .618 retrace. Right now, we are seeing the setup for that move down.
This pair has been a pattern party lately! The COMPLETED worked to perfection and yielded +360 pips on the wave (1) move up if you had taken it! And did that with little pain on the drawdown. Now, we got a COMPLETED Bat that just recently filled and has already started to fall from it. There is also a pattern that is developing as of this post.
What I am also anticipating could happen is that prices will now consolidate sideways here and form the right shoulder of the pattern while waiting for the FOMC. So what I am saying that the chart is telling me is that for this pair, the FOMC will bring a drop. Up to you whether you will believe that or not but it is what the chart is telling me.
MY TRADE PLAN
I am waiting for prices to retest that Major SR Structure overhead that was broken to the upside earlier today in what is now known to be a false break. When prices get near to retesting that structure, I will be a SELLER and will hold it through the FOMC. As for a stop, because it is to be somewhat of a BIG news announcement, there may be some whipsawing and stop hunting going on. So before the FOMC, I will be widening my stops to accommodate the swinging. But for now, when I get in a SHORT, I'll place my stops above the end of wave (1) on the chart.
Though I may not post here quite as often like before, I do continue to post much more to my own Faceb00k group (where I can BAN any TROLLS!). So if you would like to continue to see more of my posts as well as some of my trading tips, join my Faceb00k group at: http://www.faceb00k.com/efxselect. (replace the "00" with "oo" for the link to work).
If you desire to receive ALL my analysis on pairs I trade and cover as well as REAL-TIME trade signals, consider joining my private group and my members. You'll get REAL-TIME trade signals and analysis as the trade happens and discussions those trades live. Interested? Go to: efxselect.com for more info.
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.
2018 Guide TO Forex Markets Coming Soon! Want it? Sign up to mailing list: http://bit.ly/2iNieEY