Analysis -
Analysing Eur/Usd on the 4hr chart we have identified a descending trend line that the market was respecting during the bearish move to the downside.
We were anticipating a break of this trend line and began to look for signs of a reversal pattern to give us confidence we were at the start of a bullish move.
Price has since formed an inverse head and shoulders pattern which is indeed a reversal pattern.
We will monitor price around the neck line and look to get in long positions back to our area of interest at the previous swing high.
As always, I’d love to hear your thoughts and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist
Analysing Eur/Usd on the 4hr chart we have identified a descending trend line that the market was respecting during the bearish move to the downside.
We were anticipating a break of this trend line and began to look for signs of a reversal pattern to give us confidence we were at the start of a bullish move.
Price has since formed an inverse head and shoulders pattern which is indeed a reversal pattern.
We will monitor price around the neck line and look to get in long positions back to our area of interest at the previous swing high.
As always, I’d love to hear your thoughts and what your outlook is. Let me know in the comments below.
Hope you have had a profitable week in the markets, and it continues through into next week.
The Fx Chartist