EURO / DOLLAR; Technical Breakdown (Long)
So, as you can see we've had a depletion at 0.98800 where price failed to break the lows and printed a clear inverted head & shoulders
After the third bounce of the trendline, I was expecting price to break through, indicating price is reversing
We have clear / well respected support / resistance zones marked out, indicating where price is likely to go after breaking bearish market structure
Now, for me personally, I'd like to see price come back to the golden zone between the 61.8 & 78.6 fib levels to give the best / highest probability set up whilst maximising our reward to risk
You may have noticed these fib levels also line up with the trendline, a strong area of support (0.99250) as well as the neck line of the inverted head & shoulders
However,
This set-up isn't guaranteed, but, if price does come back to this zone, I will be looking to take buys as soon as we have 3 rejection candles on the 5m or 15m timeframe
We may even have a rejection of the 0.99750 level which price has previously respected as support, but again, in my eyes, the best set up which we as traders should all wait for is the highest probability set ups which to me is the deeper pullback to that 0.99250 level.
Hope you enjoyed that technical breakdown on EU. Let me know what you guys think about this pair.
So, as you can see we've had a depletion at 0.98800 where price failed to break the lows and printed a clear inverted head & shoulders
After the third bounce of the trendline, I was expecting price to break through, indicating price is reversing
We have clear / well respected support / resistance zones marked out, indicating where price is likely to go after breaking bearish market structure
Now, for me personally, I'd like to see price come back to the golden zone between the 61.8 & 78.6 fib levels to give the best / highest probability set up whilst maximising our reward to risk
You may have noticed these fib levels also line up with the trendline, a strong area of support (0.99250) as well as the neck line of the inverted head & shoulders
However,
This set-up isn't guaranteed, but, if price does come back to this zone, I will be looking to take buys as soon as we have 3 rejection candles on the 5m or 15m timeframe
We may even have a rejection of the 0.99750 level which price has previously respected as support, but again, in my eyes, the best set up which we as traders should all wait for is the highest probability set ups which to me is the deeper pullback to that 0.99250 level.
Hope you enjoyed that technical breakdown on EU. Let me know what you guys think about this pair.