The CD leg of the Intraday ABCD pattern, forming the
current retracement, is slowing down in pace, and now
price is hesitating by the 61,8 fib of CD, at 1,0975.
A failure of taking out the FOMC spike high and a
breaching of 1,0840 level and the Weekly PP, downside
risk will considerably increase, since it could also be
the forming of a Butterfly Buy, with a D point below
current multiyear low.
Still, with retail crowd on the net short side, chances are
good we will see a test of the 1,1060-80 confluence
resistance (Weekly R1, Monthly S1 and H4 SMA 200)
If a bounce from here, it could be a good level to play
a scalp long after a retest of the 61,8 level (1,0975) for a
ride towards the 1,12 with is the ultimate target of the
upward retracement, following the ABCD pattern.
First warning signs for bulls will be a close below the
daily PP at 1,0894. The Completion of the ABCD pattern
regardless how it will be completed, will be a sell signal
with a minimum target of 1,0915, the 61,8 fib of the whole
pattern.
current retracement, is slowing down in pace, and now
price is hesitating by the 61,8 fib of CD, at 1,0975.
A failure of taking out the FOMC spike high and a
breaching of 1,0840 level and the Weekly PP, downside
risk will considerably increase, since it could also be
the forming of a Butterfly Buy, with a D point below
current multiyear low.
Still, with retail crowd on the net short side, chances are
good we will see a test of the 1,1060-80 confluence
resistance (Weekly R1, Monthly S1 and H4 SMA 200)
If a bounce from here, it could be a good level to play
a scalp long after a retest of the 61,8 level (1,0975) for a
ride towards the 1,12 with is the ultimate target of the
upward retracement, following the ABCD pattern.
First warning signs for bulls will be a close below the
daily PP at 1,0894. The Completion of the ABCD pattern
regardless how it will be completed, will be a sell signal
with a minimum target of 1,0915, the 61,8 fib of the whole
pattern.