On a Daily chart of EURUSD, a price reversal pattern “Bearish Butterfly Pattern” is found, fulfilling all of its technical assumptions which are mentioned below.
- Move A-B retraced to 76.2% of X-A fall,
- And If we talk about the next move B-C it is corrected/retraced to the extent of 61.8% golden ratio.
- Hence B-C has retraced to 61.8% therefore the leg C-D extended its rally to 1.618 Fibonacci ratio.
- Move A-B is almost equals to C-D.
According to the formation the pair can test 1.1700-1.1725, stop-loss can be placed at 1.2100 level.