Wednesday, September 28, 2016

Eurusd and Eurgbp Opportunities Amidst Reports


With high impacts reports coming from USD and EUR in some hours time, we will likely see some big moves in Eurusd. So there is a need to watch closely.

ECB President Draghi will speak in Frankfurt during which time the crude oil inventories data will be released in the U.S; all these will happen 30 minutes after Fed Chair Yellen's speech.

We have been looking at a the possibility of Euro rallying to 1.46-47 price region to complete the long term wave 4 triangle as shown in the chart below.

The chart below shows that the last leg of the triangle, if complete, will be a double zigzag. A strong move upside will confirm our stance for a bullish drive.

The chart below shows make up waves of the price action as it may start the journey upside. A 5-wave (which ended at 1.1279) break out of the second leg of the prospective double zigzag we mentioned above and a 3-wave pull back (1.1178) at 61.8% fibo-retracement. A solid move to break out of 1.1279 may see price getting to 1.146.

It will be good to wait for price to confirm this forecast by breaking just as said above. We will post more quick updates at our Telegram Channel.

What if the report weakens the Euro and price breaks below 1.1178?. There may be further corrective move downside and we will be on the sideline and watch.

Meanwhile if Euro weakens, we can take a cue from Eurgbp.

The Weakness of Euro could weaken Eurgbp


We have this strong bearish bias on Eurgbp until price breaks above 0.8725. The recent rally is taken as a double zigzag correction and may be the end of wave II).

The weakness of the Euro may cause price to break out of the wave II) supply trendline.

If there is a good breakout, we may wait for a pullback while price continues downward to break below 0.83.

Our Choice

We will buy Eurusd if Euro strengthens OR Sell Eurgbp if Euro weakens at the levels mentioned.

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