• Dow pattern- higher tops and higher bottoms, (B1-T1-B2-T2).
• Price is currently trading above the valid uptrend line.
• Failure Swing
A failure swing forms when moves below 30(oversold), bounces above 30, bulls back, holds above 30 and then breaks its prior high. It is basically, as observed to chart, a move to oversold level and then a higher low above oversold level.
Failure swing have been observed: A low (trough) below the oversold level, followed by a peak that does not cross the overbought level, and the second low (trough) that is higher than the previous one.
Prices are trading above the (S) at 1.1216 the 61.8% Fib retracement level (last downtrend move).
Therefore, in case that the pair is trading across the channel, I will recommend LONG POSITIONS for the no position holders on EUR/USD . Take profit at 1.1864 the 161.8% Fib extension level. Stop loss should be a bit below the support level-S2, thus the stop loss is at 1.0800.
For LONG-holders I will recommend to HOLD their long positions and adopt the same stop loss and take profit orders as mentioned above.