Forex Market Forecast – Flag pattern on EURUSD
Hey traders, on EURUSD we finally exited a 2year consolidation period. Price chose to go lower and we want to hop on the trend as soon as we can. Right now price has no structure on the left and so there’s a potential for a huge move. In this scenario trend is usually very strong and doesn’t give long retracements to go short.
But we can find small consolidation patterns that give us an edge to play with. Here we broke to the downside the flag just created and i was away from my computer when this breaking happened. So the only way i could enter the trade short is to wait for a pullback and then sell the .618. Stops would go above the highs, first target at 1:1 RR, second target near 1,03 assuming that the move will be over after an equal measured move.
In Other View Point – EURUSD will be plummeting over the next few months
Many traders have already taken a position on EU, but if you haven’t caught on yet, short it. That is my advice. With the strengthening USD (DXY), and price breaking 2015 lows, EURUSD will be plummeting over the next few months.