I have talked about a trend reversal on last week analysis which happened this week and now we have just pullback to 0.618 Fibonacci level from the free fall which happened 2 weeks ago
Although there was a false break out above 1.176 before US market opening on Friday it was pushed back down soon after the false breakout and remain below 1.176 and formed a bearish daily engulfing candle at the end of last week
And right now, EURUSD is currently sitting in a zone below 1.176-1.177 which is a significant level acted as support since late august and a head and shoulder pattern is also trying to form in the area below 1.177
If a head and shoulder pattern is going to form, it should be done before Tuesday and continue moving lower and breaking the last swing low which is around 1.1612
It can also just break through 1.168 which is the low of the zone and continue moving lower
Although the current market condition is looking for another bearish movement, it is possible for EURUSD to :
- breakthrough the high of the zone which is 1.176
- breaking the last high which is 1.177 which will invalid a head and shoulder
- break the downward channel and break above 1.18
And turning from bearish to bullish and going higher from this point
Short position set up:
Short @1.1675 / @1.175 (risky entry but a greater risk to reward)
TP 1 @1.1615
TP 2 @1.1575
TP 3 @1.1535
SL @1.1785
Long position set up:
Long @1.1785-1.179
TP 1 @1.19
TP 2 @1.12
TP 3 @ NO TP SWING FROM HERE
SL 1.1675
Thank you for reading, please leave a like if you like the idea and have a good trading week!
Although there was a false break out above 1.176 before US market opening on Friday it was pushed back down soon after the false breakout and remain below 1.176 and formed a bearish daily engulfing candle at the end of last week
And right now, EURUSD is currently sitting in a zone below 1.176-1.177 which is a significant level acted as support since late august and a head and shoulder pattern is also trying to form in the area below 1.177
If a head and shoulder pattern is going to form, it should be done before Tuesday and continue moving lower and breaking the last swing low which is around 1.1612
It can also just break through 1.168 which is the low of the zone and continue moving lower
Although the current market condition is looking for another bearish movement, it is possible for EURUSD to :
- breakthrough the high of the zone which is 1.176
- breaking the last high which is 1.177 which will invalid a head and shoulder
- break the downward channel and break above 1.18
And turning from bearish to bullish and going higher from this point
Short position set up:
Short @1.1675 / @1.175 (risky entry but a greater risk to reward)
TP 1 @1.1615
TP 2 @1.1575
TP 3 @1.1535
SL @1.1785
Long position set up:
Long @1.1785-1.179
TP 1 @1.19
TP 2 @1.12
TP 3 @ NO TP SWING FROM HERE
SL 1.1675
Thank you for reading, please leave a like if you like the idea and have a good trading week!
