EURUSD: Potential bullish butterfly resistance area bounce

Looks like at EURUSD a potential bullish butterfly setup is forming. The 1.272 XA extension is right in a strong resistance area which gives this reversal trade a great potential. Possible targets are in my opinion: T1 beneath the 0.382 AD (RR 1.8) , T2 beneath 0.618 AD (RR 3.2) and T3 beneath 1 AD retracement (RR 5.5).

S/L goes beneath 1.414 XA extension. Wait for the potential reversal zone (PRZ) to be tested before entering the trade. Check in PRZ for reversal signs like indecision candles, needle pins, etc. If price goes beyond 1.414 XA extension, this setup is invalid.

Good trade.

Kommentera:

Pattern turned invalid. Point D moved even higher.