This pair has been channeling between 0.75 and 0.79 since it broke below this last level at the end of February and I do not see any current reason why it would not continue to do so.
Price is currently sitting in the top half of this channel and I am waiting for the bat pattern to complete. A smaller potential reversal zone lies within a larger resistance zone defined by the X-point of this bat pattern, so our stop loss (as always with a bat pattern) should exceed X in case price wants to test that level again.
The potential reversal zone was defined using the 1.618 extension of the AB-leg, the 0.886 retracement of the XA-leg and structure present.
Targets are the 0.382 and 0.618 fibonacci retracement levels of the previous move up. This would make for a 1:2 and 1:3 risk/reward ratio for TP1 and TP2 respectively.
Price is currently sitting in the top half of this channel and I am waiting for the bat pattern to complete. A smaller potential reversal zone lies within a larger resistance zone defined by the X-point of this bat pattern, so our stop loss (as always with a bat pattern) should exceed X in case price wants to test that level again.
The potential reversal zone was defined using the 1.618 extension of the AB-leg, the 0.886 retracement of the XA-leg and structure present.
Targets are the 0.382 and 0.618 fibonacci retracement levels of the previous move up. This would make for a 1:2 and 1:3 risk/reward ratio for TP1 and TP2 respectively.
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Twitter: twitter.com/NicoMuselle
