12/05/17 1.5596 start
We see that we are finishing a head and shoulders reversal pattern after a strong up move. This turns the bias now to the downside. Completion of the head and shoulders would complete a 2 wave. We are looking for an initial move to the 0.500 Fibo @ 1.5427 and then a move to the 0.618 Fibo @ 1.5311-5346 and we expect the start of a 4th wave correction there before the resumption of a 5th wave to the day chart support @ 1.5082. There are several large Wide Open Space’s (WOS) here – Don’t Miss those BIG Opportunity! Any pullback offers increased opportunity to add positions. Tptoal move would be 514 pips not counting pullbacks
How to trade it? You will need to wait for your set-up to show up, for London & New York traders, that will mean waiting for the reaction now in the current area or up at 1.5668. Take your first entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position.
Be careful at the 0.500 and 0.618 Fibo @ 1.5427 and 1.5328.
The pair typically has pullbacks in the 90 pips range, so every pullback could add an additional 90 pips to the trade with another position. Currently the ATR (14 Day - Average True Range) of the currency is 115 Pips per day, so this might take about 2 weeks with pullbacks!