The EURUSD pair is showing signs of a favorable long opportunity based on wave analysis. An ABC correction pattern appears to be forming, with the market completing the A and B waves. The C wave, which typically follows, presents a potential long setup.
Wave Pattern: A completed A-wave followed by a corrective B-wave suggests an imminent C-wave rally.
RRR: This setup offers an appealing risk-reward ratio, as the C-wave often covers a substantial distance compared to the B-wave.
Support Confluence: The C-wave's projected starting point aligns with key support levels, enhancing the trade's probability.
Fibonacci Retracements: The C-wave's target aligns with common Fibonacci retracement levels, adding to the technical confluence.
Momentum Indicator: Positive divergence on a momentum indicator supports the idea of a potential upward move.
Dollar Weakness: Considering potential dollar weakness, the EURUSD upward movement could be amplified.
News Impact: Upcoming positive economic releases may further support the long thesis.
Time Horizon: The projected C-wave duration aligns with a medium-term trading horizon.
Risk Management: Place stop-loss below the recent B-wave low to mitigate downside risk.
Monitoring: Continuously monitor price action and adapt to any changing market dynamics.
Remember that trading involves risks, and analysis is based on historical patterns. Stay updated with market developments and adjust the trade plan accordingly.
