If it is true that history repeats itself then keep an eye on the monthly chart in the euro. This chart shows the euro establishing a long term low. If the previous uptrend from the low at B to the high at C were to be replicated then the target can be projected at point E. Since this is a forecast with a horizon some point next decade, the focus can be narrowed to the low being established at D. In the near future we have to see the low established in 2015 to hold. The structure of the low at point B has a formation somewhat representing a three drives pattern, each with a successively higher low. The length of time it took to establish the low at point B was a little less than two years. Fast forward to the current low being established at point D and it becomes apparent that the length of time at these lows is running its course. If the current proposed low at D is to be held, then it stands to reason that a final higher low is imminent. So once the euro trades down toward 1.06 for an attempt to shake out the weak long holders, then look for a bear trap at which point a low risk long entry will present itself as a golden opportunity.
