nakedchartist
Short

EURUSD still in downtrend

FX:EURUSD   Euro Fx/U.S. Dollar
Last week price broke above 2 months high, but a bulltrap was completed when price fellw below 2 the months high again.
On h4 , a macd divergence was registered. suggesting that this structure might be topping out.
The ideal entry will be when a right shoulder is pumped to the 2 mth             high level.
However , price is not obliged to do so, and shortist need to consider if price will continue down from here.
SL above the head.
I agree with you on this.
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nakedchartist Trading_Colony
Yes Sir. the 2 red lines are 2 months high. if we can see a 2nd test of this resistance level via a right shoulder then we will have a bearish trade with very defined Stop Loss.
U may wish to look at the Dollar Index and u may find the inverse head and shoulders pattern in the process of formation.
EUR is closely related to the Dollar Index.
Will update this again.
Reply
On reaching the 2 months high again, price did not exhibit signs of being resisted. Hence this trade was not entered.
This trade demonstrated the importance of staying and waiting for a right shoulder to ascertain if the pivot is true or not.
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