Two weeks back we were looking for long set-up on the EURUSD pair when our target was meet just few days if not sessions after the announcement. Well, since then this market slowed down and made a nice pullback which technically speaking looks like another trading opportunitie.
Notice that trend has changed at 1.3671 after an impulsive rally through the trendline connected from 2014 highs. As such, our bias is bullish as long as 1.3671 is not breached. If you are an Elliott Wave trader then you will know that contra-trend moves unfolds in three legs against the previous impulsive wave. Well, this is exactly what we see on EURUSD at the moment. A three wave set-back from 1.3903 now approaching 50 and 61.8% retracement level that are ideal Fibonacci zones for a completed pullback. From price perspective I am looking at 1.3730, 1.3760 levels from where bounce could occur. Notice that slightly below that zone we also have a broken trend line that can turn into a support as well and help to send the EURUSD to the upside.
Notice that trend has changed at 1.3671 after an impulsive rally through the trendline connected from 2014 highs. As such, our bias is bullish as long as 1.3671 is not breached. If you are an Elliott Wave trader then you will know that contra-trend moves unfolds in three legs against the previous impulsive wave. Well, this is exactly what we see on EURUSD at the moment. A three wave set-back from 1.3903 now approaching 50 and 61.8% retracement level that are ideal Fibonacci zones for a completed pullback. From price perspective I am looking at 1.3730, 1.3760 levels from where bounce could occur. Notice that slightly below that zone we also have a broken trend line that can turn into a support as well and help to send the EURUSD to the upside.
Keep in mind that volume and momentum are also expected to come back into the market now after the Holidays so sharp and strong moves may follow soon. With that said, we think that new bullish leg for the EURUSD is near, so we are interested in longs here. Strategy can be as follows:
Long ½ at market
Long ½ at 1.3760
Stop 1.3700
Target 1.3960
Long ½ at market
Long ½ at 1.3760
Stop 1.3700
Target 1.3960
