On 5/21/2014 we posted that we were waiting for 1.3520-1.3580 to provide support for the bounce UP to SHORT. W/ the ECB announcement today it got going BIG TIME and went thru our level by 8 pips. Negligible. Did I deploy capital for V50? ABSOLUTELY NOT … no, I’am building my case for entry on a short and waited, albeit patiently for the level area to get tested and either work or not … it worked so now we build the case for entry and potential entry points. To review the post from 05/21 please see:
NOTE: I truly did not care one bit that the ECB is showing the world how dire their situation is in the Euro Zone today … I trust my patterns and the levels and now build the case for a EURO short and I will deploy capital WHEN/IF a pattern appears. Let’s get to work …
- note blue arrows and .618 overlapping. Polarity on top of a .618 retracement. I like that …watch this level at 1.3805.
- note the blue rectangle shaded area .. price held at that resistance point for 7 days. EXTEND off of that point.
now we are going down to a 30 minute chart …THE KEY TO THIS ENTIRE MOVE IS THE SIGNAL REVERSAL CANDLE …note the blue arrows. I am now PROJECTING UP using this candle and NOTE it stops right at the 4/8 th (.5) increment. This is good because the 8/8 is RIGHT AT THE .618 retracement …
so, the nice thing we are expecting is a 3 wave corrective move UP into our target zone. nothing to do now but wait … you know it will be crazy tomorrow morning so just sit on your hands for non farm payroll. The opportunity to make money will be next week …trust me on that one.