The Euro has been going up since the beginning of this year. It seems like nothing could stop its ascend especially now that the US Dollar keeps getting weaker and weaker. I say it’s time for major correction.

If EURUSD reaches 1.5025 / 1.5070 this week, that would complete the AB=CD pattern in the 4-hour timeframe, we should then start looking for shorting opportunities. We can confirm this pattern with RSI divergence or a support trend line violation.

I would place my short sell limit at 1.5025 / 1.5070, place my stop 60 pips above 1.5070 and add more on the way down. This is a counter trend trade so I recommend that you don’t expose much.

As for the targets:

T1: 1.45
T2: 1.44
T3: 1.433

Updates on this trade will be posted in the Forex Forum – EURUSD.