EUR/USD: AB=CD Harmonic Pattern Signals Potential Bullish Trade
AB=CD Harmonic Pattern Pattern Formation:
The EUR/USD pair is currently forming an AB=CD Harmonic Pattern, which is a common and reliable formation in technical analysis. This pattern is typically seen as a strong indicator of potential price movement, making it a crucial point of interest for traders.
Fibonacci Retracement & Projection Analysis:
The BC leg has shown a 58% Fibonacci retracement, aligning with a 2.0 projection of the BC leg. This confluence strengthens the validity of the AB=CD pattern, suggesting a high probability of the price reaching the D point as per the pattern projection.
Entry Strategy:
We recommend taking a Buy entry near the 1.10500 level, at the retest of the Point B breakout. This level offers a strategic entry point, capitalizing on the potential Bullish Trend Continuation toward the projected D point of the harmonic pattern.
Profit-Taking Strategy:
To maximize profit while managing risk, we suggest the following take profit levels:
TP-1: 1.11300 - First resistance zone where partial profits should be taken.
TP-2: 1.12100 - The second resistance zone is critical for further profit-taking.
Stop Loss Placement:
To protect against adverse price movements, a stop loss should be placed near 1.09690. This level is strategically chosen to allow for natural market fluctuations while safeguarding against significant losses.
Conclusion:
The EUR/USD is currently presenting a strong technical setup with the formation of the AB=CD Harmonic Pattern. By entering at 1.10500, traders can position themselves advantageously for a potential move towards the resistance zones near 1.11300 and 1.12100. Proper risk management is advised with a stop loss set at 1.09690.
Disclaimer: This analysis is for informational purposes only and does not constitute trading advice. Forex trading involves significant risk and may not be suitable for all investors. Always consult with a licensed financial advisor before making any trading decisions.
The EUR/USD pair is currently forming an AB=CD Harmonic Pattern, which is a common and reliable formation in technical analysis. This pattern is typically seen as a strong indicator of potential price movement, making it a crucial point of interest for traders.
Fibonacci Retracement & Projection Analysis:
The BC leg has shown a 58% Fibonacci retracement, aligning with a 2.0 projection of the BC leg. This confluence strengthens the validity of the AB=CD pattern, suggesting a high probability of the price reaching the D point as per the pattern projection.
Entry Strategy:
We recommend taking a Buy entry near the 1.10500 level, at the retest of the Point B breakout. This level offers a strategic entry point, capitalizing on the potential Bullish Trend Continuation toward the projected D point of the harmonic pattern.
Profit-Taking Strategy:
To maximize profit while managing risk, we suggest the following take profit levels:
TP-1: 1.11300 - First resistance zone where partial profits should be taken.
TP-2: 1.12100 - The second resistance zone is critical for further profit-taking.
Stop Loss Placement:
To protect against adverse price movements, a stop loss should be placed near 1.09690. This level is strategically chosen to allow for natural market fluctuations while safeguarding against significant losses.
Conclusion:
The EUR/USD is currently presenting a strong technical setup with the formation of the AB=CD Harmonic Pattern. By entering at 1.10500, traders can position themselves advantageously for a potential move towards the resistance zones near 1.11300 and 1.12100. Proper risk management is advised with a stop loss set at 1.09690.
Disclaimer: This analysis is for informational purposes only and does not constitute trading advice. Forex trading involves significant risk and may not be suitable for all investors. Always consult with a licensed financial advisor before making any trading decisions.
Note
TP-1 Hit
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.