1️⃣ Market Context
The chart is showing a Head & Shoulders (H&S) pattern, which is a bearish reversal pattern.
The price has broken below the neckline (black trendline), confirming the pattern.
A retest of the neckline is occurring, which could lead to further downside.
2️⃣ Trade Setup Breakdown
🔹 Pattern Breakdown:
Left Shoulder: Formed around 0.8410 - 0.8420.
Head: Formed at a higher high near 0.8450.
Right Shoulder: Lower high, confirming bearish structure.
Neckline Breakout: Price broke below 0.8370 - 0.8380 and is now retesting it.
🔹 Trade Setup:
✅ Entry (Short Position): The short trade appears to be taken at the retest of the neckline (~0.8380 - 0.8400).
✅ Stop Loss (SL): Around 0.8410 - 0.8420 (above the neckline).
✅ Take Profit (TP): Around 0.8300 - 0.8310, where strong demand is present.
3️⃣ Possible Scenarios
📉 Bearish Case (Preferred):
If price rejects the neckline, it could continue downward to 0.8310 - 0.8300 (profit target).
📈 Bullish Case (Invalidation):
If price breaks and holds above 0.8410, the H&S pattern fails, and price could push higher.
📌 Conclusion
Current Bias: Bearish (Short Setup in Play)
Ideal Confirmation: A rejection from the neckline with strong bearish candles.
Watch for breakdown below 0.8350 for momentum continuation.
The chart is showing a Head & Shoulders (H&S) pattern, which is a bearish reversal pattern.
The price has broken below the neckline (black trendline), confirming the pattern.
A retest of the neckline is occurring, which could lead to further downside.
2️⃣ Trade Setup Breakdown
🔹 Pattern Breakdown:
Left Shoulder: Formed around 0.8410 - 0.8420.
Head: Formed at a higher high near 0.8450.
Right Shoulder: Lower high, confirming bearish structure.
Neckline Breakout: Price broke below 0.8370 - 0.8380 and is now retesting it.
🔹 Trade Setup:
✅ Entry (Short Position): The short trade appears to be taken at the retest of the neckline (~0.8380 - 0.8400).
✅ Stop Loss (SL): Around 0.8410 - 0.8420 (above the neckline).
✅ Take Profit (TP): Around 0.8300 - 0.8310, where strong demand is present.
3️⃣ Possible Scenarios
📉 Bearish Case (Preferred):
If price rejects the neckline, it could continue downward to 0.8310 - 0.8300 (profit target).
📈 Bullish Case (Invalidation):
If price breaks and holds above 0.8410, the H&S pattern fails, and price could push higher.
📌 Conclusion
Current Bias: Bearish (Short Setup in Play)
Ideal Confirmation: A rejection from the neckline with strong bearish candles.
Watch for breakdown below 0.8350 for momentum continuation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.