EURUSD Short

2 mag 2021

We have 2 conflicting situations here. We have a large head and shoulders that developed(green) and a small inverse head and shoulders (orange). Ar the current moment, both these patterns lead to a short. The area where this short will stall is the 0.236 (larger H&S) and the 0.112 (smaller H&S). A retest of the ascending channel is required before entering this trade. I could not spot any harmonic patterns in this trade but my opinion is that the first wave up is done and we are currently in the correction of that wave (wave 2). My wave count could be wrong since the dollar index is showing upward movement because it is in an expanding triangle, currently in the 5th wave of the expanding triangle. Expecting a short until 1.78, but a retest of the upwards channel is required before jumping in head first. As extra confluence, we see the upwards move has stopped at the 0.618 retracement