Prices have spiked up above 1.2856 without first breaking 1.2400, invalidating the diagonal pattern. So the entry was never hit. The alternate wave count I have for this is a WXY count.
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There are two ways to trade this.
On the larger degree, it is now completing its wave Y and overall direction is downwards. We can enter a short at around 1.3200, but I think price is likely to go beyond 1.3300. Regardless of where you place your entry, stop Loss is at 1.3540 based on EW. I've decided to place mine a little higher at 1.3700. Target is 1.2400 for now.
On the smaller degree, it has either completed its wave b (at 61.8% retracement) or will proceed to move downwards. An entry at the 78.9% retracement level will give better risk-reward ratio. Stoploss as is at the previous low, I've placed it at 1.2400.
In short:
Possible trades:
Entry Limit (Short) : 1.3200 / 1.3300
Stop Loss : 1.3700 / 1.3540
Take Profit : 1.2400
Entry Limit (Long) : 1.2680 / 1.2600
Stop Loss : 1.2400
Take Profit : 1.3200 / 1.3300
What do you think?
