In a previous idea I already suggested to long EurUsd .
It's still forming the basing pattern after the 2018 drop. Today we arrived to an important support zone again at 1.1514. If you watch the chart carefully we have two H&S pattern . The first one formed after the 2017 EURUSD rally (red) and the second one after the 2018 decline (blue).
I have a serious problem with the red one. First it looked like a cup and handle continuation pattern . At the end of May 2018 we started to rally out of the pattern. The rally stopped and we tagged the magical 1.1514 again. Then a rally started again at the end of June and there was a serious chance that we are going to have a H&S pattern. But the right shoulder didn't have enough time to build up correctly and the pattern broke down without a proper right shoulder. That was a problem because right now it seems we have a false breakdown in the red H&S pattern and it became the head of the blue H&S .
Today we printed the second right shoulder of the inverted blue H&S pattern and it seems we are ready to rally. All we need to break above 1.18 and activate the blue inverted Head & Shoulders.
We are starting to have more overbought tag in the RSI... I think the bottom is behind us.
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This is always the same. When I made this call technicality the bottom was in.But they run the stops of the technical traders last night. So now the path is clean.