EUR/USD could have finished its retracement after a series of bearish momentum. The 61.8 fibonacci level seems to be holding up as price has rejected it on the H4 a couple of times. You can see a doji and spinning top on the H1 which suggests uncertainty around this level and potential reversal to the downside as PA seems to be exhausted around 1.1655. Price has reached its inner trend line which could seem to have halted price surging to the upside and indicate that the bears are coming in with great selling pressure.
If we do see price fall to the daily support level of around 1.1530, this would then form the right shoulder and therefore complete the potential H&S pattern, which could then consequently push price to 1.1450, the weekly support level.
Target is 100 pips with a stop of 50 pips, 1:2 risk/reward.
If we do see price fall to the daily support level of around 1.1530, this would then form the right shoulder and therefore complete the potential H&S pattern, which could then consequently push price to 1.1450, the weekly support level.
Target is 100 pips with a stop of 50 pips, 1:2 risk/reward.
Trade closed: target reached:
Trade successful