There are two possible Head and Shoulder patterns in play right now, the question is which one will prevail above the other one?
We have a bigger HS on the daily timeframe and an inverted HS as well on the daily timeframe.
US economy is showing to be performing better than Eurozone in spite of Friday's bad NFP data.
I'm still inclined to short EUR with caution should be break above the drawn resistances.
We are currently trading above main EMA's but we have had quite a rally showing possible pullback on H1 and H4 timeframes.
If you are a scalper or a pip sniper it looks safe to short at current levels, otherwise would be wiser to wait a bit to see whether it will head to 1.24 - 1.255 or start falling towards my target at 1.16 followed by 1.12.
RSI, STOCH, ADX, MACD are mostly bullish at the moment on the daily timeframe. On the other hand we are at 2.4 standard deviations away, that gives some chances for short term pullback.
I'm sharing scenarios, you pick your choice
We have a bigger HS on the daily timeframe and an inverted HS as well on the daily timeframe.
US economy is showing to be performing better than Eurozone in spite of Friday's bad NFP data.
I'm still inclined to short EUR with caution should be break above the drawn resistances.
We are currently trading above main EMA's but we have had quite a rally showing possible pullback on H1 and H4 timeframes.
If you are a scalper or a pip sniper it looks safe to short at current levels, otherwise would be wiser to wait a bit to see whether it will head to 1.24 - 1.255 or start falling towards my target at 1.16 followed by 1.12.
RSI, STOCH, ADX, MACD are mostly bullish at the moment on the daily timeframe. On the other hand we are at 2.4 standard deviations away, that gives some chances for short term pullback.
I'm sharing scenarios, you pick your choice
Comment:
Price has started to correct. Let's see which of the two HS patterns will follow. I'm still bearish on this pair in the long run.