Stalking a EURUSD Short

Update: It was only a matter of  mere minutes after discussing this possible trade setup that we have to discard the possibility.  The Euro dropped to a level which invalidates the pattern.   We are still looking for opportunities to trade a trend change in the Euro.   The pattern discussed below would have given us high confidence in a turn if it completed.   Since it did not, we are still waiting for clear evidence and a good trade setup.

We are on the lookout for an upcoming opportunity to short the Euro against the U. S. Dollar.   The setup is similar to the one we used to support our entry in RL, a possible ending diagonal.  If this pattern is unfolding as shown in our hourly chart then the setup would come on a move above the point where we have our wave 3 label.   The trade is wrong where wave 5 would be longer than wave 3 at 1.3516.

We need to see how the pattern develops before we determine if we enter and where, but it may come quickly so we are alerting to the possibility of a trade now.

This is a fictitious model portfolio managed to demonstrate trading techniques which may be used to trade a speculative account. The description of this hypothetical transaction is for education purposes only. Nothing related to the portfolio should be interpreted as a recommendation to buy or sell any security and the general techniques employed may not be suitable for every individual. Past performance of these techniques or this portfolio may not be representative of future results and results shown may vary from actual, live trading results subject to commissions and live market conditions including liquidity.