Last 2 weeks eur/usd have been trading down in broad bear channel, after election spike, forming wedge bottom at measured move target and double/trip bottom (on weekly chart). After a break of channel,we look for transition in trading-range (TR) for 1-2 weeks. Break of the channel is transition from trend into trading range. Bulls will target previous lower high's...
Look for short opportunities around the levels I marked on the chart. However this is medium term trade and we just entered in potential reversal zone. Pattern should not be taken in consideration if it breaks trough potential reversal zone (PRZ) drawn in red.
EUR/USD H1 chart turned down from wedge top and completed 2 legs down to support (standart target from wedge top). We are likely to see some correction up before further downside. Level to watch is 1.1193 (support), if we fall beyond this support, 1.1184 could be on our cards next.
For even safer signal you can wait for 8/14 moving average breech ( when green...
For safer signal, wait for blue floating line (8 period WMA) to cross red line (14 period EMA) for confirmation, then enter. (Not necessary)
EXIT when heikin-ashi bar turns red (safe exit). Or stop-loss below recent lows!
We are likely to see some more sideways price action, however I drew in possible Bat and Cypher harmonics on hourly timeframe. We should just wait and see if any of them will play out and provide us with any opportunity.