EURUSD - a little retracement after bat completion @ 1.1580

The EURUSD pair has been gaining some pips and seems to try to reverse the downward trend.

I drew in this bat pattern on a Renko chart because it looks a bit cleaner than on the standard candle chart. Completion as always for a bat pattern is at the .886 retracement of the impulse leg.

You'll see that I drew in 2 X-points to show that it doesn't really matter which one you choose to determine the .886 retracement.

D falls at the confluence of
.886 retracement of X1 - A leg
.886 retracement of X2 - A leg
.618 retracement of Y - A leg
1.618 extension of A-B leg

A reversal at this point could bring us back to the .382 retracement of AD (163 pips) - which aligns nicely with previous structure high (B). Given the buying pressure the second target at the .618 retracement is less likely to be reached. Nevertheless, If you roll the stops to Break Even after reaching target 1, you can still aim for target 2 (265 pips) without running any risk.

Stops as always go above X according to your personal trading plan but I would certainly advise a minimum of 20 pips in this case, which would place it around 1.1660 (80 pips)

All in all, a nice potential setup with a 2/1 RR for T1 and bigger than 3/1 for T2.

May the pips be with you !