Possible head and shoulders forming

Updated

For a long time I've been Bear-biased on EURUSD, but it seems that we might just have a head and shoulder forming within the triangle.

Possible trading options would be to buy low @ 1.16500 or sell high @ 1.19000. Both require patience and a good entry point.

For the buy:
TP1: 1.17600
TP2: 1.19500
SL: 1.15700

For the sell:
TP1: 1.17600
TP2: 1.15000
SL: 1.19500

Note

Scenario #!:
Small movement, short term, ranging downwards.

Note

Scenario #2:
Large movement, long term, completion of overall head and shoulders pattern.

Note

Either way, I believe we can expect price action towards 1.17600.

NFP day tomorrow might just catalyze the whole process.

Note

38.2 Fibo line not broken. Scenario #1 more possible

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1.17660 reached. Bearish movement inbound if the market plays along.

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Bearish movement confirmed.

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Nice quick 40 pip downwards move from EURUSD. Looks like the currency is right on track for the head and shoulders. Next-up; Draghi speaks.

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Very decent 100 pip move down to the support level.

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Price currently testing old support/new resistance,
Two possible scenarios to follow:

Trade active

Trade closed: target reached

First target reached! Confirmation of first shoulder.

Chris4XTrading

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