01/10/18 1.6629 start
We are waiting for a break of support @ 1.6629 or (hopefully) and a-b-c correction up to the 0.382-0.500 Fibo (1.6629-1.6777) This turns the bias now to the downside and a continuation of the channel ( that may well be a trend). We are looking for an initial move to the current bottom @ 1.6575 and then a move to the 0.786 Fibo @ 1.6432. Our target is the 1.6232 Day chart bottom, but we might get an additional move to the 2.270 Fibo Extension @ 1.6062. There are several large Wide Open Space’s (WOS) here – Don’t Miss those BIG Opportunity! Any pullback offers increased opportunity to add positions. Total move would be 497 pips if we get the a-b-c initially not counting pullbacks. There is a potential for another 180 pips below the Day chart bottom.
How to trade it? You will need to wait for your set-up to show up, for London & New York traders, that will mean waiting for the reaction now in the current area or up at 0.382-0.500 Fibo (1.6629-1.6777). Take your first entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position.
The pair typically has pullbacks in the 150 pips range, so every pullback could add an additional 90 pips to the trade with another position. Manage that Pullback by removing all but the FIRST TRADE. Currently the ATR (14 Day - Average True Range) of the currency is 105 Pips per day (which is lower than its 180 day average), so this might take about 2 weeks with pullbacks!