Morning everybody,
So, we come to the end of the year... Pullback that we've discussed yesterday is started. Not only on EUR but on DXY, bonds etc. Probably this is still a respect of daily COP and butterfly targets, although we thought they have been passed already. But it doesn't change anything, as we use the same levels whether they response on targets or just a separate retracement:
As we've said yesterday, on 4H chart we have a kind of reverse H&S pattern. On daily chart this is just a COP and no overbought. Combination of these factors suggest that the pullback should not be too deep. So we're mostly watching for 1.1043 and 1.0980 K-support levels here:
Now we've got AB-CD pattern on 1H chart, and market already is coming to the 1.1043 support area. Minor butterfly could finalize action to OP. XOP stands in Agreement with 5/8 level, which is also K-support on 4H chart:
In current situation it makes sense to use scale-in entry way. This is more simple. That's all about technical background for now.
The only question that you have to decide - in general, would you want to take position today and hold it through long holidays. It is mostly psychological and money management, risk, question.