Greetings everyone. Friday’s decline in EURUSD stopped right above the neckline and long-term support. We were expecting this decline from 1.1620 and respecting the support at 1.1550 made me close my short positions.
— Alexandros Yfantis (@alexanderYf) September 6, 2018
#EURUSD its Friday and prices stay just above the neckline…I’m short since yesterday so I will say thank you very much and have a great weekend….oh give me my profits and I’ll be gone https://t.co/hGJzd3PvDa
— Alexandros Yfantis (@alexanderYf) September 7, 2018
EURUSD has formed a H&S pattern that targets 1.14 and lower if this support area between 1.1530-1.1550 fails to hold.
However we should not ignore the chances this pattern does not play out and we see EURUSD break above 1.1660 resistance area. This will increase the chances of another bullish this time pattern of an inverted head and shoulders pattern that will be confirmed on a break above 1.1730.
Are we now forming the right shoulder of this inverted pattern? If this is the case then we should be long. Either way, 1.1530-1.1550 is key support and can be used by bulls as well for a stop level. A daily close below this area will open the way for much lower towards 1.14. For more live analysis find me on twitter at @alexanderyf….thank you for taking the time to catch up on my thinking.