We were unable to open a Bearish position in my last publication on this pair as the price continued to find a higher level ( see link below for reference purposes) but the current structure transposing into a Head & Shoulder - a strong reversal pattern suggests that the bears might lead to further decrease in price in the meantime.
Tendency: Downtrend (Bearish)
Structure: Reversal pattern (H & S) | Supply & Demand
Observation: i. It is obvious that the price has continued to climb high for the Euro since the beginning of the year 2021 and it appears to be at a juncture where we might consider the beginning of a temporary correction after observing the appearance of a Head & Shoulder pattern.
ii. Head & Shoulder: A baseline with three peaks; the outside two are close in height and the middle is highest describes a specific formation that predicts a bullish-to-bearish trend reversal.
iii. The later part of last week witnessed price breaking down Y132.800, a level which held price "Supported" (Demand zone) in the last 17days with clues suggesting a risk of further decline in the nearest future.
iv. In this regard, I have identified a niche for selling opportunity around Y133.400/133.000 should the price climb up early in the new week.
v. Below Key level II @ Y132.800 might be a level for conscious trading as price running below the Neckline gives succour for Bearish momentum... Trade consciously! 😊
Trading plan: SELL confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:3
Potential Duration: 3 to 7 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Downtrend (Bearish)
Structure: Reversal pattern (H & S) | Supply & Demand
Observation: i. It is obvious that the price has continued to climb high for the Euro since the beginning of the year 2021 and it appears to be at a juncture where we might consider the beginning of a temporary correction after observing the appearance of a Head & Shoulder pattern.
ii. Head & Shoulder: A baseline with three peaks; the outside two are close in height and the middle is highest describes a specific formation that predicts a bullish-to-bearish trend reversal.
iii. The later part of last week witnessed price breaking down Y132.800, a level which held price "Supported" (Demand zone) in the last 17days with clues suggesting a risk of further decline in the nearest future.
iv. In this regard, I have identified a niche for selling opportunity around Y133.400/133.000 should the price climb up early in the new week.
v. Below Key level II @ Y132.800 might be a level for conscious trading as price running below the Neckline gives succour for Bearish momentum... Trade consciously! 😊
Trading plan: SELL confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:3
Potential Duration: 3 to 7 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
