Now that the EURUSD has thrusted down out of the bearish triangle pattern, prices have fallen to the profit target and are near the Monthly S1 support level.
Also, scroll out to a daily chart on the EURUSD (not shown). The November 7, 2013 daily candle drafted a very large wick to the downside which is another level of support near 1.33.
What makes the bullish reversal interesting is that this move lower in the EURUSD has also occurred on slowing momentum evidenced through the CCI.
So we have bullish CCI divergence appearing at a monthly support level. This offers us a good chance at a good risk to reward ratio trade.
A meaningful break below monthly S1 at 1.3270 suggests the EURUSD may accelerate to the downside.
Also, scroll out to a daily chart on the EURUSD (not shown). The November 7, 2013 daily candle drafted a very large wick to the downside which is another level of support near 1.33.
What makes the bullish reversal interesting is that this move lower in the EURUSD has also occurred on slowing momentum evidenced through the CCI.
So we have bullish CCI divergence appearing at a monthly support level. This offers us a good chance at a good risk to reward ratio trade.
A meaningful break below monthly S1 at 1.3270 suggests the EURUSD may accelerate to the downside.
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
