This is a little prediction that I have for EURUSD, for the upcoming days/week.
I would like to see an inverse head and shoulders form with the tip of the head reaching 1.17 before going long again. If you were to measure the tip of the head to the neckline and back you can see that would match well with the distance between the neckline and the previous higher high. As the DXY losses strength due to the global pandemic of COVID-19 this would great support this - and my theory that the "strength" we're seeing from the DXY is more of a fakeout that a recovery for the dollar.
The neckline also lines up with well with the 50% fib retracement level which is a level which I feel from my backtesting is a key level for major pairs. It will also will support the current uptrend that this pair is playing and personally matches with my own trading plan...
Obviously this is a prediction, fundermentals, news, etc will play great contributing factors. But would be interesting to see how it plays out.
Please don't take this analysis as gospel, use your now initiative and carry out your own analysis.
I would like to see an inverse head and shoulders form with the tip of the head reaching 1.17 before going long again. If you were to measure the tip of the head to the neckline and back you can see that would match well with the distance between the neckline and the previous higher high. As the DXY losses strength due to the global pandemic of COVID-19 this would great support this - and my theory that the "strength" we're seeing from the DXY is more of a fakeout that a recovery for the dollar.
The neckline also lines up with well with the 50% fib retracement level which is a level which I feel from my backtesting is a key level for major pairs. It will also will support the current uptrend that this pair is playing and personally matches with my own trading plan...
Obviously this is a prediction, fundermentals, news, etc will play great contributing factors. But would be interesting to see how it plays out.
Please don't take this analysis as gospel, use your now initiative and carry out your own analysis.