EUR/USD – Moving lower in a corrective AB=CD formation
|Technical
Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2408. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) found sellers. The move lower is mixed and volatile common in corrective formations.
Weekly: Completed a bearish Elliott Wave count to the downside (5-waves completing at 1.1216). Price action on the week 12th November posted a bullish engulfing formation close to the 61.8% pullbacks level of 1.1186 (from 1.0340-1.2556).
Daily: Yesterdays price action posted a bearish Outside Day, often an indication that a top is in place. A full AB=CD corrective formation would take the pair to 1.1240. With a stop placed under the 61.8% pullback level (weekly chart), buying dips offers a reasonable risk/reward set up.
We look to Buy at1.1240
Stop: 1.1140
Targets:1.1580 and 1.1620
Article produced by Pia First for Orbex Limited
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