Hey Traders so as I just metioned on the US Dollar forming a 123 bottom formation we can now see that the Euro has formed a 123 top formation. This is a strong bearish signal that means the Euro could be about to make a 50% retracement. I will be shorting the Euro now that the daily charts have confirmed this pattern!
The way you trade the 123 top formation is you place your sell order below the 2 point and your stop above the 3 point and then you make a profit target of at least 2 to 1 or more. If the Fed decides to taper due to inflation we can see the Euro fall hard possibly way down do even march lows. Of course always expect the unexpected when you trade the forex and always use risk management before you enter your trades!
Trade Well,
Clifford
The way you trade the 123 top formation is you place your sell order below the 2 point and your stop above the 3 point and then you make a profit target of at least 2 to 1 or more. If the Fed decides to taper due to inflation we can see the Euro fall hard possibly way down do even march lows. Of course always expect the unexpected when you trade the forex and always use risk management before you enter your trades!
Trade Well,
Clifford
