I am looking for a shorting opportunity for the EURUSD, and this may just be it.
15min Chart
Prices have made a nice retracement of 61.8%. It is around the 1.618 extension of the first rally up. Price is around the S&R level due to the price gap.
So we can place a trade here, and there are a few places you can place the stop:
a) Put a stop above the wave ii high – about 1.2725.
b) If you want to be more conservative, you can place the stop just above the wave i low – 1.2672.
c) A possible alternate wave count is that wave ii was in fact the wave 2 which unfolded as an expanded flat. Then you would place the stop just above wave 1 – 1.2704.
Alternatively, you can wait for price to confirm, i.e. make a series of lower lows, before you enter. Of course, that means you get in short at a level price level.
Fingers crossed… (I’m crossing my fingers quite abit lately, aren’t I?)
