Currency Pair EURUSD
Event Short
% Risk 1
RRR 2/1
Technical Analysis ABCD pattern off of downtrend. Complex pull back that doesn't break resistance level.
Fundamental Analysis New years holiday, EUR CPI, German Unemployment and Manufacturing, USD NFP etc.
Feeling Grade B setup but still mechanical trade. Would take trade consistently....
* Pullback doesn't close above .786
* B-C leg close below .382 but not below X-A
*** If C-D leg can close above 1.272 and below 1.414, Then TP at .618 & .382.
* RRR at least 1.4/1 (.618) & 2.28/1 (.382)
Head & Shoulders (H&S) pattern formed off of Daily chart and 4hr has Bearish flag forming. H&S could break down about 200 pips. With oil and gold acting childish it would be a great pair to go with. Daily chart shows uptrend but if you go up a Timeframe to the weekly you can see we're just in a pullback off of strong downtrend. So call it what you want... Reversal...
Resistance has held for a couple months and Resistance. Divergence on higher time frames. High probability it will volley back down to support. Only reason I would be leery is if build up begins at resistance level.