Updating the prices in an older chart for EURUSD, we see that our target has been achieved as expected in our previous blog post (http://profitablerisktaking.blogspot.gr/2012/08/upward-correction-not-over-in-eurusd.html).
Now that EURUSD has found resistance in the upper pitchfork downward sloping line, the market has finished a 3 wave correction. Trend will most probably resume downwards with targets below 1,20. For this scenario to hold, we need to see support levels break. First support at 1,2133 and the middle pitchfork support a bit lower. Next support is at July low at 1,2040. The expected decline should have an impulsive pattern in order for this bearish scenario to come true. For bulls to have a chance, EURUSD must not break 1,2133 although it can retrace the last upward move towards 1,2250 (61,8%). If the decline looks corrective then bulls should be ready to reenter in order to prepare for a new upward move. I favor the bearish scenario as it is more possible in my opinion. Stop loss at 1,2450 for any short position opened is my strategy now.
Thank you for taking the time to read my post.
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