1Hr EURUSD to go with my previous Daily analysisEURUSD is falling to retest the shoulder of the Reverse Head & shoulders pattern i analyzed on the daily chart. If price holds above this Right “Shoulder”, we could see the pair rise to new Monthly Chart highs. The monthly chart shows a head & shoulders, indicating Bearish momentum. However, if we break to the downside, we could see the EURUSD at all time lows over the next few years. The number that EURUSD should reclaim to continue Bullish momentum, would be the 1.20697 area.
I’m short term bullish, as price (on the Weekly) is pulling back from a very bearish drop (from the 1.20697 area. I’m long term bearish, awaiting a high enough retracement back to the current high. Once the current highs are retested, I’ll await a bearish signal to enter short on the daily. I wouldn’t expect to be taking profits for at least a year, as this bullish bounce (that created the Right “Shoulder” of the pattern) that’s happing right now, took out more than a years worth of selling (on the weekly).
Ultimately, this move could be a spike into more selling pressure to come, or it could mean there’s reversal is on the way & this current Weekly Reverse Head & Shoulders could see the EURUSD making new highs. The monthly chart is in an uptrend, seeing that the current low is higher than the previous. Those last 2 elements put together would be more powerful than a short set up.
So, if I do end up shorting, as price moves up, it may only be for quick profits. Any sign of bullish momentum on the weekly chart & I will reverse to long term Long.
