This idea is related to previous analysis regarding how to trade the Head and Shoulders pattern that has formed on the D1 chart. As expected, price has started to retrace towards the neckline of the Head and Shoulders in the process forming a rising wedge on the H4 timeframe. I am looking to sell upon the successful close of a Bearish candle beyond the support line of the wedge.
Trade active
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We got the close of the 4H candle at the desired location at 1AM EST. Since then we've had a re-test of the support line and positive employment news has so far helped propel the trade in the desired direction.
Trade closed: stop reached
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Trade was stopped out on a volatility spike as buyers tried to wrestler control on the wake of poorer than expected payroll productivity. The news of Powell being appointed as head of the Fed did not strengthen the USD as much as I had hoped either.
For now my bias is neutral as neither sellers or buyers have been able to concretely pick a direction for EURUSD as of yet.