Hey Traders! Long night... Here is a quick update. This is a great example of why EW analysis will aid in your harmonic pattern entries. We know that the bearish impulse is not complete and the bullish reversal has not yet begun. This can be seen clearly by a series of bearish impulse waves that have not yet completed a 5-wave pattern. Therefore, it would not...
The Shark I talked about is definitely finished right now.
The TL at the bottom seems not to hold.
On the daily chart, there are several possible patterns to note (sorry about the messy chart), the ratios are pretty nice
1. AB=CD TP 1.25380
2. Bat TP 1.25436 (pretty tight with AB=CD pattern, so there should be a strong PRZ around 1.2540)
3. Alt Bat TP 1.23662
4....
Bearish Gartley price reversal zone approaching in RED
Larger Alternate Bat Price reversal zone above in BLUE
In play - Daily Bullish ABCD, Weekly bullish Shark
AUDUSD is on the downtrend so I am looking to short this wherever possible.
However there is a long alternate bat pattern coming at last week low of 0.7175 area. If this is triggered then we have a long trade for about 100 pips. This would like to a likely gartley pattern to short as shown in the chart.
Let's see how this pans out next week.
