IS THIS HEAD AND SHOULDER PATTERN A SIGN OF A TOP ON EURUSD??
Hello traders i hope you are having a nice trading week so far.
As i mentioned at the title of this article we have a Head and shoulders pattern on EURUSD daily chart but for more clarity i use the 4H chart.
As a lot of economists and bankers from Europe and from the rest of the world were guessing that the area of 1,20 will a major key resistance point beacause of previous price structure,as it was an area well respected before the big crsisis started at Europe with NPL's and the Greece's debt and so on.But also because at these levels Euro is considered not too expensive in order to start hurting the exports to non-Eurozone countries.Last but not least the 1,20 is a psycological barrier that aslo plays an important role.
So here we are and we have a Head and Shoulders formation at a major resistance,nobody can tell for sure but it seems that Euro's rally is having some serious issues at these levels.
In my opinion nobody will learn before the German elections that is a major catalyst for Euro.There are two scenarios either the outcome of the elections goes to Merkel as expected and we have a good boost for Euro either Merkel does not win the elections and we have a bearish for Euro.
At first scenario possible targets are 1,23 and then 1,27 and at seconf scenario first target is 1,1580 and then 1,1480 and finally 1,1400.
TECHNICAL OBSERVATIONS
1.We can see the Head and Shoulders pattern formed.
2.The 200EMA acting as a very good support as price touched it and bounced up again.
3.Price is currently in consolidation mode as we are into the Ichimoku cloud.
4.The neck line of the Head ans Shoulders pattern coincides as a very good support/resistance level.
5.If neck line holds we are looking into a continuation at least to previous highs if neck line-support area does not hold we are looking to a trend changing move even until 1,16 as we see from the red line projected as a terget from the Head and Shoulders pattern.
6.RSI currenlty at 50 area both at 4h chart and daily chart signaling that we are in no mans land and in consolidation mode.
THANKS FOR FOLLOWING EVERYBODY!
HAPPY TRADING AND KEEP FOLLOWING FOR MORE PROFITS!
As i mentioned at the title of this article we have a Head and shoulders pattern on EURUSD daily chart but for more clarity i use the 4H chart.
As a lot of economists and bankers from Europe and from the rest of the world were guessing that the area of 1,20 will a major key resistance point beacause of previous price structure,as it was an area well respected before the big crsisis started at Europe with NPL's and the Greece's debt and so on.But also because at these levels Euro is considered not too expensive in order to start hurting the exports to non-Eurozone countries.Last but not least the 1,20 is a psycological barrier that aslo plays an important role.
So here we are and we have a Head and Shoulders formation at a major resistance,nobody can tell for sure but it seems that Euro's rally is having some serious issues at these levels.
In my opinion nobody will learn before the German elections that is a major catalyst for Euro.There are two scenarios either the outcome of the elections goes to Merkel as expected and we have a good boost for Euro either Merkel does not win the elections and we have a bearish for Euro.
At first scenario possible targets are 1,23 and then 1,27 and at seconf scenario first target is 1,1580 and then 1,1480 and finally 1,1400.
TECHNICAL OBSERVATIONS
1.We can see the Head and Shoulders pattern formed.
2.The 200EMA acting as a very good support as price touched it and bounced up again.
3.Price is currently in consolidation mode as we are into the Ichimoku cloud.
4.The neck line of the Head ans Shoulders pattern coincides as a very good support/resistance level.
5.If neck line holds we are looking into a continuation at least to previous highs if neck line-support area does not hold we are looking to a trend changing move even until 1,16 as we see from the red line projected as a terget from the Head and Shoulders pattern.
6.RSI currenlty at 50 area both at 4h chart and daily chart signaling that we are in no mans land and in consolidation mode.
THANKS FOR FOLLOWING EVERYBODY!
HAPPY TRADING AND KEEP FOLLOWING FOR MORE PROFITS!
Comment:
Neck line is already broken and we see some dump on EUR of course triggered by the German elections..We are waiting a retest of the significant level and maybe a continuation down...
Trade closed: target reached
