EURUSD : late night bear Cypher forming on the hourly
Bearish Cypher pattern @ 1.09225
Target 1 1.08933
Target 2 108742
Stops 1.09556 (Based off of a 1.13 fib inversion from the C to X leg)
In addition to that, we have other reasons for entry. Not only does the pattern complete in an area where three major resistance levels coalesce (as dictated by the four hour), the overall leg of the move down has a .618 retrace in that same congestive area where the pattern completes.
Note the B to C leg pattern and how the pattern is not drawn from the wick down there in this particular instance. That is because according to rules governing cyphers, that actually is a 1.618 extension. However, the pattern is allowed to wick down there, provided it closes at or above the 1.414 which it did in this instance.
I predict we will wick to the completion point of the pattern, as price will test this strong area and ultimately get rejected downwards. This pattern has an ugly risk/reward profile, so plan accordingly....
Target 1 1.08933
Target 2 108742
Stops 1.09556 (Based off of a 1.13 fib inversion from the C to X leg)
In addition to that, we have other reasons for entry. Not only does the pattern complete in an area where three major resistance levels coalesce (as dictated by the four hour), the overall leg of the move down has a .618 retrace in that same congestive area where the pattern completes.
Note the B to C leg pattern and how the pattern is not drawn from the wick down there in this particular instance. That is because according to rules governing cyphers, that actually is a 1.618 extension. However, the pattern is allowed to wick down there, provided it closes at or above the 1.414 which it did in this instance.
I predict we will wick to the completion point of the pattern, as price will test this strong area and ultimately get rejected downwards. This pattern has an ugly risk/reward profile, so plan accordingly....