EURUSD looks like its setting up what I like to call the move within the move, its not uncommon to see does type of behaviours in the market.
what is the move within the move?
in my experience its a combination of patterns at key areas that will strengthen levels of support and resistance and help the market prepare for a big move.
In this example I want you to pay attention to the drawing, but mainly on the left side witch is for me a look a like for a potential right shoulder of an up side down head and shoulders.
Now looking at the price range from 1.1850 to 1.1511.
my observation says that the 1.1850 price range is a potential neckline, and the 1.1511 price range would be shoulder entry levels.
safe areas to buy for swing would be around the 1.1511 or 1.13 if price range as we have many strong rejection at does levels.
Now look at the drawing, I'm predicting a fall back to the 1.13 area because the market is unlikely to rally higher as its end of the month.
Plus we have strong rejection in that price range where the market closed.
Now I'm sure that I have seen this type of patterns before when the head of an up side down head and shoulders is a double bottom AKA W PATTERN , so that's one of the reason my brain is telling me to get out in any buy trade lock my profits and wait and see what happens next week.
now based on the size of the potential left shoulder my logic also says that similar behaviour could happen on the right side of this potential upside down head and shoulders before the price explodes up like a fountained into 1.20 price range.
in any cast only time will tell... until then see you soon traders and trade safely.
what is the move within the move?
in my experience its a combination of patterns at key areas that will strengthen levels of support and resistance and help the market prepare for a big move.
In this example I want you to pay attention to the drawing, but mainly on the left side witch is for me a look a like for a potential right shoulder of an up side down head and shoulders.
Now looking at the price range from 1.1850 to 1.1511.
my observation says that the 1.1850 price range is a potential neckline, and the 1.1511 price range would be shoulder entry levels.
safe areas to buy for swing would be around the 1.1511 or 1.13 if price range as we have many strong rejection at does levels.
Now look at the drawing, I'm predicting a fall back to the 1.13 area because the market is unlikely to rally higher as its end of the month.
Plus we have strong rejection in that price range where the market closed.
Now I'm sure that I have seen this type of patterns before when the head of an up side down head and shoulders is a double bottom AKA W PATTERN , so that's one of the reason my brain is telling me to get out in any buy trade lock my profits and wait and see what happens next week.
now based on the size of the potential left shoulder my logic also says that similar behaviour could happen on the right side of this potential upside down head and shoulders before the price explodes up like a fountained into 1.20 price range.
in any cast only time will tell... until then see you soon traders and trade safely.