EURUSD has broken the 1D Rectangle (RSI = 61.651) but remains within the neckline of the Inverted Head and Shoulders on 1W. The 1W Resistance is at 1.1850 and since the long term trend remains bearish, the price should now reverse back inside the 1.1510 - 1.1730 Rectangle. So far, the price has been rejected twice near the 1.1730 mark, which if left intact on the next 4H candle too, will be considered a support and reverse to 1.1800. Now the 4H Channel Up (RSI = 64.227, Highs/Lows = 0.0007) needs to cross 1.1682 to nullify the pattern. We remain short with TP = 1.1450 buy have opened an additional short that will be booked at 1.1570.
seems like 1.1830-40 would be an ideal place to sell. lots of volatility for this week, especially fed rate hike.
Zoen_Trieste
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Sound reasoning. However, there’s still a decent chance of neckline breaking currently. Need to see a bearish close here.
InvestingScope
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@Zoen_Trieste, That is correct. We are expecting the confirmation from the bearish close. We believe today's upside move was pricing Draghi's comments on the inflation outlook.