The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls rose by 559,000 in May and despite figures reported to be below expectations, the Greenback appears to be on the verge of soaring in the nearest future.
Tendency: Downtrend ( )
Structure: Breakdown | | (AB = CD)
Observation: i. The $0.7300 area appears to be a very strong supplication area since the beginning of the year 2021 as an attempt from buyers to break above this level in February was followed by an emphatic run that lasted a whole month!
ii. It is also obvious that the $0.73000 level became a stalling zone (approximately of AB leg) for the correction of the Impulse leg AB as it was met with multiple rejections hereby emphasizing the strength of sellers at this juncture.
iii. In this regard, I shall look forward to a transition into an with parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is currently at 61.8% (with the possibility of a 78.6%) of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext . of the A-to-B move @ $0.67500.
iv. The Breakdown of $0.71000 ( ) in March 2021 reveals that sellers are beginning to creep in at this level for future investment in the Greenback.
v. This critical observation led to the identification of a New of around $0.72000/0.71500 for a future selling opportunity.
vi. Conscious trading shall anticipate a Breakdown/Retest of Key level @ $0.71500 in the coming week for confirmation.
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
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Past performance is not necessarily indicative of future results.