Now, the price action has yielded a ( ) pattern which is a . From here, if the overhead structure rejects prices, then it should drop possibly all the way down to complete the .
Should you take SHORT positions here? I can't tell you what you should do but I've already taken a SHORT position. This is a structure based trade and not a trade based on the CD leg of the although I am using the possible D point of the to take profit. . Remember, until the D point is completed, THERE IS NO PATTERN there! Only a POTENTIAL for there to be a pattern.
THE TRADE SET-UP
Taking the structure-based trade gives an excellent risk-reward ratio Just be warned though that prices could still push a little higher as it is normal for ending diagonals to have a "flare-tail" where prices will jump up out of the diagonal breaking the upper and quickly retracing back down. This is especially common near some S/R as there will be stops there and stop-hunting is one cause of this flare.This price action is what leaves behind a . So be prepared to handle some possible draw-down.
In my wave count of the recent up-move in this pair, prices should be just about finished with the wave 5 and are getting ready to retrace down.
Also, BTW , there is divergence present as well.
As long as prices don't exceed 124.266, then we will still have a valid C point of this POTENTIAL .If prices do exceed that point, then there is not any . Potential or otherwise.