Forex Trading Forecast: EURUSD- The Fractal Effect Says The Next Move Is Down.
Here’s the updated Daily chart. In this updated chart of EURUSD, you can see that prices did EXACTLY that. Right to the tee! This was what the previous fractal said it would do. And it did. Pay attention to that upper TL. That TL is the extension of the bottom TL of the first larger fractal. It is also the mirror line separating the two fractals. It is an important TL and you can see how prices kept hitting off of it over and over again. And it just did it again. And it will still have a role going forward.
In this 8HR EURUSD chart, you can see clearly how prices rose up to hit that upper TL and was subsequently rejected. That upper TL combined with a lower TL set by prices earlier in the trend combined to create a trading channel upwards. I am now expecting that prices will now reverse back down to that lower TL before we see another sustained move up. I see the recent weekly trend up as the wave (W) of a complex WXY wave up of the larger overall wave (C). This move down I am expecting will be the wave (X) of that WXY.
This move up to hit that upper TL also completed a POTENTIAL Bat that was waiting. This coming drop back down should also at the least hit the TP1 of that bat. And it may very well also hit the TP2.
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don’t ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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