There is however an opportunity to go long early next week based on several observations. I have done a quick Delta MTD count for EUR/USD and it seems that it is quite probable that medium term low has arrived last Friday.
From the chart, we can see that MTD 12 low is due after the yellow line. Furthermore, in the last cycle, the length of time from MTD 9 to MTD 12 is 76 calendar days. In the current cycle, the length of time from MTD 9 high (1.514) to last Friday's low (1.3584) is 72 calendar days. With the weekend, the length of time from MTD 9 high to next Monday is going to be 75 calendar days, which is very similar in time compared to the last cycle.
A couple of things support the idea of a corrective bounce:
1. Stochastic is very oversold and in need of corrective bounce.
2. The distance between MTD 9 to MTD 10 is equal to the distance between MTD 11 to MTD 12 (bearish flag pole is completed).
3. The 1.35 - 1.36 area is the weekly ichimoku cloud support zone.
4. Last Friday we had a hammer candle.
5. USD Index daily chart made a doji last Friday
