This chart is for demonstration and educational purposes.
EUR/USD exhibits a head and shoulders pattern on day chart; we are in a bear market trending downward, which is also confirmed by the 50 MA. It appears as though this pair is experiencing retracement. Price seems to pull itself back to the 38.2% fib area. Price has respected this 38.2% fib level (at 1.1750), and has tested this area for now a second time. We also see the railway track candlestick pattern on the day chart. We may experience further retracement, afterwhich price may continue on to test lower price levels towards the shoulders level of the head and shoulders pattern. Given the structure of this pair and price movement, I anticipate a short on a long term basis with multiple retracements as price reaches lower levels. For this reason, this trade would be considered a swing trade for greater profits. Trade at your own risk. This is for educational purposes and study only. I am a student always.
EUR/USD exhibits a head and shoulders pattern on day chart; we are in a bear market trending downward, which is also confirmed by the 50 MA. It appears as though this pair is experiencing retracement. Price seems to pull itself back to the 38.2% fib area. Price has respected this 38.2% fib level (at 1.1750), and has tested this area for now a second time. We also see the railway track candlestick pattern on the day chart. We may experience further retracement, afterwhich price may continue on to test lower price levels towards the shoulders level of the head and shoulders pattern. Given the structure of this pair and price movement, I anticipate a short on a long term basis with multiple retracements as price reaches lower levels. For this reason, this trade would be considered a swing trade for greater profits. Trade at your own risk. This is for educational purposes and study only. I am a student always.