Thursday, August 20, 2015
EURUSD May Still Have Room To Run
EURUSD formed a solid ABCD pattern which is overlaid with a Fibonacci Extension. This pair could have room to run if it can get through the 76.4% Fib level followed by the 85.4% level. We should see EURUSD run to at least 100% Fib level which would bring this pair to the 1.13736 level. Considering the move from point B to point C was shallow at 54.4% compared to the expected 61.8% level shows that buyers we eager to resume the uptrend.
If you're still long we would recommend lightening up on your position at bare minimum around this 76.4% level. With the remaining position you could place your stop between break-even and just below point B depending on your aggressiveness.