Here we have EUR/USD in what looks to be an Inverted Head & Shoulders pattern on the 4Hr Chart!
Unlike its counterpart, the Inverted Head & Shoulders is typically a strong reversal pattern found in the markets at the end of a Downtrend where the "Left and Right Shoulders" test approximately the same level with the "Head" being a further test of prices below that initiate the beginning of the potential switch to Uptrend.
Price on Oct. 12th gave the "Neckline" @ 1.06167 quite a dirty retest resulting in a FALSE BREAK but price found itself declining to give us the second shoulder.
Now price is RIGHT BACK UP to the Neckline line with a possible UPCOMING BULLISH BREAK!
Fundamentally, both EUR and USD are riddled with news events from Purchasing Managers Index for both on Tuesday, Monetary Policy Statement and ECB Press Conference for EUR and Unemployment for USD on Thursday. So TREAD WITH CAUTION THIS WEEK!!
-Pattern Prediction-
*If price Breaks and Closes below 1.04881, pattern INVALIDATED!!
*If price Breaks and Closes above 1.06167, price action will initiate my Trade Action Plan!
**Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
Unlike its counterpart, the Inverted Head & Shoulders is typically a strong reversal pattern found in the markets at the end of a Downtrend where the "Left and Right Shoulders" test approximately the same level with the "Head" being a further test of prices below that initiate the beginning of the potential switch to Uptrend.
Price on Oct. 12th gave the "Neckline" @ 1.06167 quite a dirty retest resulting in a FALSE BREAK but price found itself declining to give us the second shoulder.
Now price is RIGHT BACK UP to the Neckline line with a possible UPCOMING BULLISH BREAK!
Fundamentally, both EUR and USD are riddled with news events from Purchasing Managers Index for both on Tuesday, Monetary Policy Statement and ECB Press Conference for EUR and Unemployment for USD on Thursday. So TREAD WITH CAUTION THIS WEEK!!
-Pattern Prediction-
*If price Breaks and Closes below 1.04881, pattern INVALIDATED!!
*If price Breaks and Closes above 1.06167, price action will initiate my Trade Action Plan!
**Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
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We got a STRONG Break and Close above the Neckline!
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With price showing exhaustion here before London Open, here are my entry details:
-BUY-
{ SL } 1.05710
{ ENTRY } 1.06178 - 1.06061
{ TP } 1.08781 - 1.08050
*TRADING INVOLVES RISK! DO NOT TRADE WHAT YOU DO NOT UNDERSTAND OR HAVE NOT TESTED BEFORE! THIS IS NOT TRADING ADVICE. EDUCATIONAL PURPOSES ONLY!*
-BUY-
{ SL } 1.05710
{ ENTRY } 1.06178 - 1.06061
{ TP } 1.08781 - 1.08050
*TRADING INVOLVES RISK! DO NOT TRADE WHAT YOU DO NOT UNDERSTAND OR HAVE NOT TESTED BEFORE! THIS IS NOT TRADING ADVICE. EDUCATIONAL PURPOSES ONLY!*
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UPDATE: I believe the market for EUR/USD may be going through some manipulation so I am putting this Trade Idea on the back burner until the dust settles a little more!!!
HOLD!!!!
HOLD!!!!
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Beautiful turn-out!!
