EURUSD sentiment shift?!
Updated
Ok, so quick update with the EURUSD. We can see that after February's drop we got exposure to some solid support at the 61.8% retracement from the highest high. This is mimicked by the intense price action from the smaller 38.2% - 50% within that range. They're the baby blue lines.
We can see that this chart has one bull flag at the end of an even bigger flag. To trade this we would need a strong close above the smaller bull channel (grey pattern), coincided with a strong close above the bigger channel (white pattern).
Aside from a bullish rally, we can actually see a head and shoulders pattern forming. If the smaller bull flag pattern were to break down and close below the neckline we would see a drop to the 1.19 area. Of course the pattern would HAVE to break through the bigger 61.8% retracement floor, followed by the 50% and 61.8%.
The RSI is starting to show higher lows and the MACD has passed a bullish crossover.
All in all I will be looking for a strong close above both flags, or keep the smaller one for a small position.
If I start to see sentiment change, then I'll be shorting to the neckline, then below that if the HS pattern stays true.
We can see that this chart has one bull flag at the end of an even bigger flag. To trade this we would need a strong close above the smaller bull channel (grey pattern), coincided with a strong close above the bigger channel (white pattern).
Aside from a bullish rally, we can actually see a head and shoulders pattern forming. If the smaller bull flag pattern were to break down and close below the neckline we would see a drop to the 1.19 area. Of course the pattern would HAVE to break through the bigger 61.8% retracement floor, followed by the 50% and 61.8%.
The RSI is starting to show higher lows and the MACD has passed a bullish crossover.
All in all I will be looking for a strong close above both flags, or keep the smaller one for a small position.
If I start to see sentiment change, then I'll be shorting to the neckline, then below that if the HS pattern stays true.
Note
We can see a timely moment where the Euro is testing out an old resistanceNote
We got ourselves a breakout!Note
So we can see that there was a minor pull back to about 61.8% of the initial impulse. If we see the price get pinched into the old resistance, a new position could be made depending on the side it closes on, and the strength of the candle!Note
Note
False breakout so far as long as price stays below the red resistance areaNote
A look into an outer view and notice how the old resistance will be the next test of support.
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