Head and Shoulders forming on EUR/USD (D)
A possible H&S has been forming on the EUR/USD chart since mid-July 2017, visible through the daily chart.
The pattern has already threaten to break through in August 2018, but instead, happen to be only an extension of his 9 months old head.
Back in September 2018, it attempted to break through to the other side, trying to outperform the top of its right shoulder, invalidating the pattern and giving success to a possible bull run. Instead, it gave us a nice bull trap.
Such movement ended up not happening and instead, the price decided to come lower again, retesting the 1,13 area and possibly the H&S neckline, once more.
If the price is to break out the neckline, accompanied with some decent volume, this H&S pattern might be validated and some serious down prices are to be expected.
In accordance with that line of thought and through what I currently see in this chart, I present you with three possible targets, shall the price fail to hold on the neckline, and move further down.
A conservative target located at the 1,08 area (38,2%), a medium target at 1,05 (61,8%) and a more aggressive target at 1,03 (78,6%).
Shall the price rebound and move pass the 1,18 area, breaking it with some decent volume, this pattern should become invalidated.
Please, share your thoughts and ideas about what you think, how to trade it and how would you do it. Good trades everyone!
The pattern has already threaten to break through in August 2018, but instead, happen to be only an extension of his 9 months old head.
Back in September 2018, it attempted to break through to the other side, trying to outperform the top of its right shoulder, invalidating the pattern and giving success to a possible bull run. Instead, it gave us a nice bull trap.
Such movement ended up not happening and instead, the price decided to come lower again, retesting the 1,13 area and possibly the H&S neckline, once more.
If the price is to break out the neckline, accompanied with some decent volume, this H&S pattern might be validated and some serious down prices are to be expected.
In accordance with that line of thought and through what I currently see in this chart, I present you with three possible targets, shall the price fail to hold on the neckline, and move further down.
A conservative target located at the 1,08 area (38,2%), a medium target at 1,05 (61,8%) and a more aggressive target at 1,03 (78,6%).
Shall the price rebound and move pass the 1,18 area, breaking it with some decent volume, this pattern should become invalidated.
Please, share your thoughts and ideas about what you think, how to trade it and how would you do it. Good trades everyone!
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