Looking into the smaller time frame of the EURUSD (15min) - A pattern could be found emerging, this patterns seems to be forming a falling wedge which indicates a bullish movement that will follow after. In another POV it could be seen as an inverse Head and Shoulders from this mini downward movement which both indicators bullish movement coming.
Looking at the 4hour chart of EURUSD, it can be found that an inverted Head and Shoulders is forming as seen drawn on the chart above. This signals very strong bullish movement.
A triangle formation is able to be formed as well in the 4 hour time frame (Not shown here) which corresponds with a bullish movement as it breaks upward from the triangle.
Looking into...
In respect to the trendline drawn on the 15min, a potential short call could be seen. With the RSI currently reaching 'oversold' and a flag pattern formation would contribute to the analysis of a short call.
Seems like a potential inverted Head and Shoulders pattern. Ideal in this situation will be to wait for it to break out and wait for it to retest the neckline and taking a long and riding it upwards.
Looking at a simple trend-line drawn in the chart. It can be seen that the chart is respecting it. With a uptrend forming with new higher highs and higher lows, a potential long position could be ideal in this scenario. In relation to my previous post of GBPJPY break-out, this could be a follow up factor.
In reference to my previous posts on GBPJPY, it can be seen that my analysis has proven correct with it currently reaching a new high and respecting the trendline. In this simple analysis, a potential short downwards to retest the trendline once again seems feasible.
As seen in the chart, GBPJPY is currently undergoing a consolidation phase and with this two scenarios may emerge. A long or short play depending on which side it breaks out.
