Forex Trading Library

EURUSD – Reverse Head and Shoulders forming at confluence area

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Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2320. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) found sellers. The move lower is mixed and volatile, common in corrective formations.

Weekly: The break to the downside has reached the 61.8% pullback level (from 1.0340 – 1.2550). A common corrective support.

Daily: Mixed and volatile trading for the last 158 days has formed an Ending Wedge pattern. Although the major currency pair broke the formation to the upside, the rally could not be held. On A clear break of resistance, the measured move target is located at 1.1815

Daily 2: Possibly forming a bullish reverse Head and Shoulders pattern. A break of 1.1460 would confirm the outlook.

Intraday:  This mornings price action has formed a hammer pattern close to the Fibonacci confluence area (1.1234-1.1225). There is scope for mild losses, but we now look for upside pressure to resume

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