I’m already long of this pair, and if these support levels hold then I will look to aggressively add to the trade. The theory goes something like this:
- Wave 1 was impulsive off 1.2160:
- Wave 2 began off 1.2260, is more constructive in nature, and should consist of 5 sub waves:
- Support should form near prior highs and a 61.8% retracement level near 1.2415/20:
- Stops should be kept below 1.2380 and 1.2335.
As always, if you cannot afford the risk, don’t take the trade!
That’ll do me for today. See you tomorrow when it should be a bit busier ahead of the NFP++