EUR/USD: Reaches Confluence Support + 100% Proj Target

3 באפר׳ 2019The exchange rate looks set to be in a late maturity state as part of its bearish cycle, if one is to judge by the critical support we’ve reached at 1.1180-85, but most importantly, how we’ve reached it. The sell-side campaign from the highs of 1.1440 has come in 5 legs, with each impulsive leg down decreasing in magnitude and velocity as the blue rectangle measured moves reflect (170p, 108p, 63p). The price has now reached what may potentially become the ultimate target where a period of distribution occurs before an attempt to build up a fresh upside bias on the basis of an exhausting cycle due to the completion of its 5 legs sequence (3 impulsive down, 2 corrective up). To strengthen the bullish case scenario, the descending trendline in red should be violated and acceptance found, ideally, above 1.1230, which coincides with the midpoint of the last consolidation pattern. It’s worth noting the extreme accuracy in terms of price reactions to each an every 100% proj target hit.