EURUSD Sticking with my ABCD count

17 Jul 2016

I have been following the corrective pattern on the EURUSD chart for some time. I still have the view that this pattern is playing out. We have a deep retrace of a smaller BC leg (grey ABCD) which could reach the 70% retrace of the AB leg by the 20th. After this we could expect the CD to complete at a 127% extension at the beginning of August. For the larger ABCD pattern to complete at E on the larger contracting triangle I would then expect a smaller retrace of the larger ABCD (Lime coloured ABCD) and longer extension. However, the market will do what the market will do. A break of the corrective structure to the downside will invalidate this idea.