EURUSD Potential Gap fill

14 mai 2017

EURUSD demonstrating bearish momentum with the price consolidation (Bullish price becoming more narrow) which represents a weakness in the bulls. We have a channel as seen on the chart with 5 waves complete with the formation of a bearish belt hold formation. 1.100-1.1100 being a key holding area we can expect price to fill the gap which is a 50-61.8% retracement on the 5th impulse; this will also create a RT of the bearish "BlUE" Trendline. We can expect price to pick up bullish momentum around this area and reach 1.1200. However, a break below the channel will confirm the continuation pattern of a rising wedge on a bearish trend which can push price lower. However, our entry for this trade will be executed on PA confirmation, entries will be seeked on the H4 or H1 time frame.