EUR/USD Trade Analysis, Potential Flat ABC or Flag Structure

Overview:
The EUR/USD pair appears to be forming a Flat ABC correction or a Flag structure on the chart. This pattern suggests that after the completion of wave A and B, a potential wave C is expected to form, providing both a selling and buying opportunity depending on the wave's development.

Wave Structure:

1.Wave A (Completed):
- The initial wave A appears to have completed its formation. This wave typically represents a corrective phase where the price initially moves against the prevailing trend.
- In the case of EUR/USD, wave A has already played out, setting the stage for wave B and the subsequent wave C.

2.Wave B (Completed):
- Wave B often retraces a portion of wave A and is now completed. This wave generally represents a counter-correction within the overall corrective structure.
- The completion of wave B signals that the market is now poised for the final leg of the correction, wave C.

3.Wave C (Anticipated):
- Wave C is expected to follow, marking the final phase of the correction. This wave often mirrors the length of wave A, completing the ABC correction or flag pattern.
- Sell Setup: Traders should look for a selling opportunity as wave C begins to form. This could occur at a key Fibonacci retracement level or other technical resistance points where wave C is expected to start.
- Buy Setup: After wave C completes its formation (likely around the previous low or key support level), there could be a strong buying opportunity. This is where the correction ends, and the market resumes its previous trend, potentially setting up for a long position.

Key Levels to Watch:
- Resistance Levels: Monitor the key resistance areas where wave C could begin its downward move. This could include Fibonacci retracement levels or prior swing highs.
- Support Levels: Look for support areas where wave C might complete, such as previous lows or significant support zones that coincide with Fibonacci extensions.

Trade Plan:

1.Short Position:
- Enter short near resistance or at the beginning of wave C.
- Target the completion of wave C, which could be near key support zones.
- Place stop-loss above the wave B high to manage risk.

2.Long Position:
- Look to enter a long position at the end of wave C, near strong support or upon confirmation of a reversal.
- Target previous highs or resistance areas as the market resumes the previous trend.
- Place stop-loss below the wave C low to protect against further downside.