Reverse Head and Shoulder patten forming in EURUSD Daily
Technical Analysis:
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A reverse head and shoulder pattern has formed in EURUSD, if the price action continues to go up, it can gain ~300 pips.
The neck line, left and right shoulders and the head of the H&S pattern are previous significant levels (means support or resistance in past).
Fundamental Analysis:
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1) Santa Clause Rally :
For whatever reason the stock market keeps going up in December, and USD should depreciate against major currency pairs including EUR
2) The VIX Index has gone down significantly due to the ceasefire between Israel and other parties
There are other factors like Trump administration would consider crypto as mainstream currency, which would depreciate USD. But that might happen in 2025, we should see the H&S happening in December if the price action continues in the same/upward direction.
Note: A trade idea I post here is also my trading journal.
================
A reverse head and shoulder pattern has formed in EURUSD, if the price action continues to go up, it can gain ~300 pips.
The neck line, left and right shoulders and the head of the H&S pattern are previous significant levels (means support or resistance in past).
Fundamental Analysis:
===================
1) Santa Clause Rally :
For whatever reason the stock market keeps going up in December, and USD should depreciate against major currency pairs including EUR
2) The VIX Index has gone down significantly due to the ceasefire between Israel and other parties
There are other factors like Trump administration would consider crypto as mainstream currency, which would depreciate USD. But that might happen in 2025, we should see the H&S happening in December if the price action continues in the same/upward direction.
Note: A trade idea I post here is also my trading journal.
Order cancelled
The price is bouncing around the neck line for many days now. I think the H&S is invalidated, so closing this trade idea.
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