Daily price action has reached the 0.500 retracement of the X to A leg but has not touched the 0.618.
The B to C leg has not has not violated A by closing above it.
The finishing move should be at 0.886. This zone has also proved to be a strong support and resistance area in the past.
RSI divergence would be another ideal signal in the next couple of days.
I'm entering long at 0.96659 to account for the spread.
Target is placed at 0.98186 which is a 0.382 retracement of the C to D leg.
Stop loss is at 0.95708 which is 15 pips below X, taking as a reference the values of the ATR since the pattern started.
The B to C leg has not has not violated A by closing above it.
The finishing move should be at 0.886. This zone has also proved to be a strong support and resistance area in the past.
RSI divergence would be another ideal signal in the next couple of days.
I'm entering long at 0.96659 to account for the spread.
Target is placed at 0.98186 which is a 0.382 retracement of the C to D leg.
Stop loss is at 0.95708 which is 15 pips below X, taking as a reference the values of the ATR since the pattern started.