Alright, so first off :
1) we have a completed head and shoulders pattern at the top of the chart. Judging by the necktie height, the movement should be running out of steam and getting ready for a reversal.
2) The falling action seems to have formed a falling wedge which is breaking out right as it hits structure support.
3) The price range of the falling wedge mouth would place end of the breakout movement right around structure resistance.
4) As long as structure resistance holds this creates a much larger head and shoulders pattern that would bring the price way back to pre- May levels
Will be going long for the time being, taking profit at head shoulder level, will then short way back down to 1.3
1) we have a completed head and shoulders pattern at the top of the chart. Judging by the necktie height, the movement should be running out of steam and getting ready for a reversal.
2) The falling action seems to have formed a falling wedge which is breaking out right as it hits structure support.
3) The price range of the falling wedge mouth would place end of the breakout movement right around structure resistance.
4) As long as structure resistance holds this creates a much larger head and shoulders pattern that would bring the price way back to pre- May levels
Will be going long for the time being, taking profit at head shoulder level, will then short way back down to 1.3