This is an update on my previous idea on this pair.
The FOMC decision not to change US interest rates sent this pair on it's way to possibly fill a bat pattern!
I've included 2 possible butterfly patterns (possible with a B @ .786 of XA and 2 possibilities for the completion of D) and 1 possible crab pattern. The blue arrow points to the preferred scenario, the red arrows are potential alternative scenario's based on the other possible advanced patterns.
3 trades and possible targets are on the chart which are based on the bat.
The high of earlier today was almost at the completion of a bearish harmonic AB=CD pattern so we could see PA retracing down now but I do think that the downside will be limited for this pair at the current time. If we get below the B point of the possible bat we may go lower and we might be on our way to C of one of the two possible butterfly patterns (very premature). The lower red rectangle and arrow represent that scenario.
If the bat short fails I will be looking to short again at the completion of either the butterfly patterns or the crab pattern.
The FOMC decision not to change US interest rates sent this pair on it's way to possibly fill a bat pattern!
I've included 2 possible butterfly patterns (possible with a B @ .786 of XA and 2 possibilities for the completion of D) and 1 possible crab pattern. The blue arrow points to the preferred scenario, the red arrows are potential alternative scenario's based on the other possible advanced patterns.
3 trades and possible targets are on the chart which are based on the bat.
The high of earlier today was almost at the completion of a bearish harmonic AB=CD pattern so we could see PA retracing down now but I do think that the downside will be limited for this pair at the current time. If we get below the B point of the possible bat we may go lower and we might be on our way to C of one of the two possible butterfly patterns (very premature). The lower red rectangle and arrow represent that scenario.
If the bat short fails I will be looking to short again at the completion of either the butterfly patterns or the crab pattern.
