EURUSD weekly
23/12/13
The Long term outlook is Long since the inverse H&S pattern is quite a strong one: the support held and the price action is now near the highs. However a failed H&S pattern is still possible as the RSI is showing a bearish divergence.
Things look for in order to remain bullish:
1. A weekly close above the downtrend line coming down from 2010
2. Remaining above EMA8 (both on weekly and daily chart) which shows an ongoing upward momentum
For trading EURUSD short on smaller timeframes (good reward to risk ratios), the current price could be shorted given price is not above the 61.8% retracement of prior weeks candleline. A solid short term signal would come from a close below the upward trendline followed by a close below the support line. In such a case, a failed H&S pattern could be as good as the current H&S pattern.
The Long term outlook is Long since the inverse H&S pattern is quite a strong one: the support held and the price action is now near the highs. However a failed H&S pattern is still possible as the RSI is showing a bearish divergence.
Things look for in order to remain bullish:
1. A weekly close above the downtrend line coming down from 2010
2. Remaining above EMA8 (both on weekly and daily chart) which shows an ongoing upward momentum
For trading EURUSD short on smaller timeframes (good reward to risk ratios), the current price could be shorted given price is not above the 61.8% retracement of prior weeks candleline. A solid short term signal would come from a close below the upward trendline followed by a close below the support line. In such a case, a failed H&S pattern could be as good as the current H&S pattern.
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