EURUSD: Fifth wave impulse is now a real possibility

Feb 19, 2016

Last week I published an idea that this pair would be looking to retrace down in accordance to the wave count it was following, unfortunately in that example the price didn't reach our entry level but I believe we are presented with an excellent trading opportunity here. This pair has now retraced down to a 38.2% fib level completing the 4th Elliot wave impulse to allow for a last movement higher. A tweezor bottom bullish candlestick pattern has also formed on this daily frame which is being supported by Kijun Sen (base line) as the price continues to trade above the kumo cloud. The wide gap in-between the base line and conversion line is indicating to us that a sizeable move is imminent and according to my idea, this move will be bullish. Fib extension level 161.8 is a potential target but I will be looking to take profits from 1.13900 as I ultimately don't see this pair posting a higher high as parity is a very plausible option sometime this year.