Special Consultant to the FPA
If I am not mistaken, AUDUSD is showing a possible DRPO sell on the daily time frame, with a close below the 3x3 today. Is the target of this signal .618 retracement of the whole swing to the upside?
Hi Icarus, and Pckeysi was looking at the same thing.. but it can also be developing into a butterfly sell on 4 hour with the left wing having started at the 61.8 extension of the last abc pattern
Weekly TF still very bullish..
I'm long with a tight stop bellow the low at around the 1.0570 mark ...if the previous low gets taken out.. then the left wing of the butterfly will be invalidated and the pattern canceled ..
DRPO is a reversal pattern, so target should be below the pattern in AUD case. Usually the minimum target of DRPO is 1.0-1.27 extension from ABC pattern, that based on the tops of DRPO.
But on AUD is not DRPO due to couple of reasons - too deep first penetration of 3x3 and tops are not equal. This looks more like triangle consolidation or something like that...