So far, the price is acting the way we estimated it might act in the previous analysis. The price made a turn almost exactly at the upper trendline
(yellow dotted line). There is one important thing that needs to be taken into consideration here. The "surge" trend is NOT a 5 wave structure, as it does not qualify for a couple of reasons. It is most likely a 3 wave (abc) correctional wave, which explains the fastness of the surge (up move), almost like a thrust. It must have taken many traders by surprise. If this diagnostics is true, then we shall expect an EQUALLY FAST Move in the opposite direction NOT stopping at halfway (i.e. fibonacci 50%) but going all the way to the lower trend line
(shown in yellow thick line) to around 1.20 levels(shown as circle), which would constitute a very good long entry position again. Current position could be a very good short entry, also supported by daily inverse hammer
, strong resistance area
(red box on picture) etc.