Forex forecast / EUR/USD / Our expectations:
Break of mid-diagonal and horizontal line of support, after reaching the cost to a cardinal level of resistance around 1.2050. The area around 1.2050 was tested, but we do not have a full bar over it. Currently, the price movement forms a H&S figure that is not yet activated, but gives us good levels of positioning before it happens. In the short term, a downward channel is formed, and we currently have a 50% correction of this movement, coinciding with 38.2% Fibonacci and 50SMA. Price below 50SMA - Negative signal. CCI (50) below zero and CCI (14) returns from 100 downward - a signal for a new downward wave.
Our expectations are the price to continue the downward movement, as the negative sentiment increases, as in the breakdown of the Neckline (in the 0% Fibonacci case).
SL: 1.1955
Alternative scenario: If the price returns above the horizontal and diagonal resistance, the negative scenario will break and we are more likely to see a follow-up test at the cardinal level around 1.2050.
Jr Trader Petar Milanov
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