Hi Traders,
The Head & Shoulder is a reliable reversal pattern. If you master the Elliott Waves you can identify the right entry points and targets to enhance the profitability of your trading in such a market condition.
SITUATION
With the violation of this major support at 1.2886 the EURUSD - which now staged a H&S in the daily chart - will start the last major wave downward which might bring it to 1.19 and, under extreme conditions, to 1.12, target that I wouldn't dismiss at all.
If this analysis is correct, the resistance around the area 1.2899-1.2911 (or maybe 1.2928-1.2935) should be a viable entry point for a juicy short, lasting weeks.
TARGETS
daily chart
DOWN
likely: area 1.2752-1.2744
possible: the area 1.2658-1.2688
weekly chart
DOWN
likely: the area 1.2457-1.2520
possible: 1.2328
Note the cycles in the weekly chart below. Also, check the targets (blue horizontal lines).
weekly chart - click to enlarge
The Head & Shoulder is a reliable reversal pattern. If you master the Elliott Waves you can identify the right entry points and targets to enhance the profitability of your trading in such a market condition.
SITUATION
With the violation of this major support at 1.2886 the EURUSD - which now staged a H&S in the daily chart - will start the last major wave downward which might bring it to 1.19 and, under extreme conditions, to 1.12, target that I wouldn't dismiss at all.
If this analysis is correct, the resistance around the area 1.2899-1.2911 (or maybe 1.2928-1.2935) should be a viable entry point for a juicy short, lasting weeks.
TARGETS
daily chart
DOWN
likely: area 1.2752-1.2744
possible: the area 1.2658-1.2688
weekly chart
DOWN
likely: the area 1.2457-1.2520
possible: 1.2328
Note the cycles in the weekly chart below. Also, check the targets (blue horizontal lines).
weekly chart - click to enlarge
See the Head & Shoulder in the daily chart below
daily chart - click to enlarge
4-hour chart - click to enlarge
1-hour chart - click to enlarge
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