Technical analysis : Last two trading days in the last week were decisive for the EURUSD and brought us an increased volatility along with the mid-term trading signal. We were waiting for that quite a long time. That movement helped to create a right shoulder of the H&S pattern and then the breakout of the neckline – actually triggering the sell signal.Current scenario is a small bullish correction - comeback to the neckline (1.1660-90) and then a bearish bounce and a continuation of the downswing
Indicators:
DeMark(14) divergence with the price
Price below 100 SMA
Price below 50 SMA
Price below 200 SMA
Alternative: Apart from the head and shoulders pattern, we do have another formation here. It's the flag (blue lines) and it still promotes the upswing. Buy signal will be created once the price will break the upper line of the flag arround 1.1818
Trader: Velziar Mitov
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