Where is the Euro Likely to Go Next??

I looked at the Euro chart on Friday and asked myself whether the move could have been anticipated, and my response was an emphatic yes.

I noticed a divergence at point A and suspected a buy may not be viable unless PA closed above the candle that pierced the trade focus buy number. I then started anticipating a reverse trade opportunity on failure at this point. PA eventually reversed as anticipated moving swiftly to point B for about 134 pips!! Whoa was my response as I missed this part of the move. So are we done yet or what next. I drew a Fib retracement to anticipate what may happen next and PA pulled back to point C which is the 38.2% FR level. Now what next; where will PA likely go? I did 2 things:

1. drew a Fib expansion, anticipating PA to drop possibly to between FE 61.8 and FE 161.8 as PT;
2. I also looked at the possibility of an AB=CD pattern forming, which will probably bring PA to point D the FE 100 level.

PA made it to point D for another 121 pips completing an almost AB=CD pattern before making an almost 50%FR retracement to point E. PA has since resumed the downtrend, and the question now is, where is the Euro likely to go next??


I believe every chart always give a clue of the next movement, and if we are wrong we can still be prepared for the counter trend move. This is why our alert service always give the channel within which PA bounces before making a decision. Look at the chart below

If PA is to continue its downtrend, then I will expect it to possibly drop to between FE 61.8 (4113) and FE 161.8 (3906) but just like we saw at point A, I noticed a possible divergence showing (as highlighted) and hinting at the possibility of a reversal. I will be ready to buy a break of the trade focus buy number or sell at the lower channel number, should PA continue down but knowing the downside target is limited!!!


I wish you all God's speed and a great trading week.


Cheers, and God bless


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