EURCHF H1 Bullish AB=CD Pattern

16 Jun 2011
Daily Chart :
 Bullish crab had been formed on EURCHF daily chart. 0.618XA for B point and 0.382AB for C point validate this pattern which takes 3 month to complete. This example show an important to wait for all the PRZ level had been test especially 1.618XA for a crab pattern.
On 1 Jun 2011 price action had test 3.618BC at 1.2090 and quickly reverse from a predominant down trend a day later. Despite that i'm still considering this pattern still not yet complete as price action not yet test the very important level in crab pattern  which is 1.618XA at 1.1940. This cause this pair in consolidation for more than a week. A clear completion of this bullish crab pattern could be seen on the chart as price action are testing 1.618XA at the moment.

 H1 Chart:
On the H1 chart we could see a bullish AB=CD pattern.
0.786AB retracement at C point define a reciprocal ABCD pattern which make D point must be at 1.27BC . Convergence of 1.27BC and AB=CD at 1.1940 complement the area for PRZ Zone.

1.1940 possess a very important pivot level as it represent 1.618XA on the daily and AB=CD on the hourly chart. Such situation making this setup possess very sharp reversal.As seen price action quickly reverse after merely test the 1.1940.
Entry: Buy at 1.1983.

UPDATE 17 Jun 2011

Breakout on the 5M supply zone. Next supply zone should be at 1.2105-1.2125. I had lock in profit below current supply zone at 1.2010.Very extra cautions must be taken in this trade as tension remain in EU regarding greece bailout etc.Risk averse condition on Friday trading also my reason i lock in profit quickly in this trade.

Update : SL had been triggered at 1.2010 for 27 pips profit.

Posted in: AB=CD,Bullish,EURCHF