The EURUSD has broken down the head & shoulders pattern aggressively at the end last week. There is a significant amount of bull sentiment out there which should result in a quick backtest to the neckline at 1.17 on significant volume providing ample opportunities to get into this trade at a great price. This is my target short entry level, provided the resistance at 1.17 remain intact. If the 1.17 resistance remain unbroken, I expect capitulation of the bulls and a continuation of the aggressive price erosion started last week. The short target is the 200 EMA (minimum target range) and then n to challenge the key support level at 1.12 (maximum target range).
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Resistance holdings well bellow 1.17 downtrend backtest level. Hourly flag is failing with dwindling volumes. Flag breakdown below 1.1630 will be confirmation of bear trend continuation. Then downwards to 1.14 or lower.
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bumping into resistance at 100MA and failing on the hourly. An overnight breakdown is likely on the European markets.
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Flag breaking down on the hourly as Europe comes online. Well below key resistance which is strong bearish signal. Short trade already active, how low can you go Euro?
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Last week was a long sideways slide, no fundamentals: FOMC meeting said "same old, same old", fed appointment was "status quo" candidate, and no surprise data or ECB direction. Friday's end of day selloff finally took it below key support as bulls unwound their positions before the weekend. Monday could show a gap down open
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This is a stubborn bear, bull stops have not been hit yet, but when they are hit it will be a dramatic decline. 1 hour showing slow retracements with sudden drops, 4 hour showing bear flag broken and soft backtest. Today is important to show downwards price movement.
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On the verge of a breakdown on the daily & hourly. Either 1.15700 fails or a double bottom has been made and it will rebound up. With gold falling at the same time, I'm committed to a strong USD and expect the EUR to challenge at least 1.14 with a maximum target of 1.12. Today's action will be critical.
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painfully slow choppy breakdown, but notice the consistent lower lows and lower highs. On the daily, we see all red heiken ashi. This is mixed signal looking for direction. On the 4 hour we saw a good failure to 1.15100 then bounce back to 1.16. If 1.16400 resistance holds, we are still on track for 1.14-1.12, if 1.16400 broken, downtrend failed and we are back to neutral. Price action today will be important.
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Trend line broken, idea no longer valid. Stopped out at neutral.