This pair has been ranging in a 255 pip wide bearish channel on the 30M for the last 3 days and 18 hours. We can now see the contour of a 5-point extension structure taking shape: a deep bullish Crab pattern. The price comfortably passed the B point on its way towards the potential reversal zone (PRZ) and has progressed 75% on its way to completion point D. Main difference with the standard Crab pattern is the deep 886 B point retracement of the XA leg.
Price action can stall immediately after testing the PRZ and reverse considerably though it might exceed it slightly to test support at 175.55. I will look to enter the trade conservatively, upon signs of reversal within the zone. This means a decisively bullish candlestick must close (bullish engulfing, tweezer bottoms, hammer or white marubozu) before entering. SL goes 10 pips behind the next support level. TP1 = 382 retracement of AD and TP2 = 618 retracement of AD.
There are 216 pips on the line and the trade has an excellent reward – risk ratio of 8.4!
UPDATE: PA penetrated the reversal zone and tested all levels (without exceeding it) before reversing and hitting both TP1 and TP2.
Price action can stall immediately after testing the PRZ and reverse considerably though it might exceed it slightly to test support at 175.55. I will look to enter the trade conservatively, upon signs of reversal within the zone. This means a decisively bullish candlestick must close (bullish engulfing, tweezer bottoms, hammer or white marubozu) before entering. SL goes 10 pips behind the next support level. TP1 = 382 retracement of AD and TP2 = 618 retracement of AD.
There are 216 pips on the line and the trade has an excellent reward – risk ratio of 8.4!
UPDATE: PA penetrated the reversal zone and tested all levels (without exceeding it) before reversing and hitting both TP1 and TP2.
You don´t need to be a weatherman to know which way the wind blows - B. Dylan