Despite the fact EU trading in correction, I've spotted an area where traders should pay attention to, the price has already tested the major resistance level between Aug-Sep.
Consider below reasons for selling market.
1. EURUSD is now trading below 50% and 61.8 fib ret.
This is clear indication that EUR could continue trading low against Cable.
2. Another reason is that our harmonic or XABCD pattern have came with a bat pattern, which shows that the CD leg has already been completed, and the Bearish movement has taken place according to the current market price.
3. I've noticed that the price has started with raising trendline or channel from the price level of 0.95455 which matced exactly to the 100% of the 31 may high.
And the last highest traded price matched with our last part of our bat pattern leg that's D and that's exactly the resistance of the raising trendline/channel.
4. The European Central Bank (ECB) has came dovish after their interest rate decision, and the Lagarde hints more economical pains till end of the year.
With the above reasons I believe EURUSD will reach atleast 0.98088, which is retest level of broken descending trendline respected since 08/Jun/22, it also matches our 78.6 ret level, and the testing area of raising trendline/channel.
It means price has to reset raising trendline/channel atleast before going back high to 61.8 ret level.
Find confirmation using lower timeframe.
Consider below reasons for selling market.
1. EURUSD is now trading below 50% and 61.8 fib ret.
This is clear indication that EUR could continue trading low against Cable.
2. Another reason is that our harmonic or XABCD pattern have came with a bat pattern, which shows that the CD leg has already been completed, and the Bearish movement has taken place according to the current market price.
3. I've noticed that the price has started with raising trendline or channel from the price level of 0.95455 which matced exactly to the 100% of the 31 may high.
And the last highest traded price matched with our last part of our bat pattern leg that's D and that's exactly the resistance of the raising trendline/channel.
4. The European Central Bank (ECB) has came dovish after their interest rate decision, and the Lagarde hints more economical pains till end of the year.
With the above reasons I believe EURUSD will reach atleast 0.98088, which is retest level of broken descending trendline respected since 08/Jun/22, it also matches our 78.6 ret level, and the testing area of raising trendline/channel.
It means price has to reset raising trendline/channel atleast before going back high to 61.8 ret level.
Find confirmation using lower timeframe.
