Our expectations: The corrective movement breaks below 1.19 and the next appropriate purchase levels are in the area above 1.1820. SL must be sufficiently far off at at least 1.1745, as Friday's data for Non Farm Payrolls can lead to volatility which will be suitable for new long positions in EUR.
The 1,1820 levels are diagonal and horizontal supported and Fibonacci 61,8 of the last ascending wave. At those levels we will also look for a suitable signal from Japanese candles such as dodji, pin bar or engulfing.
The correction was mainly driven by recent data on ADP Nonfarm Payrolls and expectations for better data on Friday. This is more likely to be short-lived and see a new upward movement.
Alternative scenario: If the price breaks below 1.1820 and remains there (at least 3 closed bars) it is likely to lead to a deeper correction.
Trader Nikolay Georgiev
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