EURUSD has been going up massively after the result of the French Election. Now the daily chart is way over extended, and in need of a pullback. We are seeing some resistance around 1.1230 area, and bearish momentum start to come into play. 1 HR chart potentially is forming a Head and Shoulder pattern, looking for a lower high to develop as the right shoulder to enter the short position.
Hi, Jo. Does the H&S pattern outweigh the fact that a lower low hasn't been created on H1 and/or H4, thus indicating the possible trend change?
jojofang0901
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@barbellsandbarcharts, I am waiting for a good rejection once price makes a lower high, so I wont jump into the trade until I see the price action finds some resistance, confirming the H and S pattern. Hope this answer your question. :)
richienewrich
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@jojofang0901, I believe it does, thank you. I always look for a lower low as indication of the trend change and then look to short the retest/formation of a lower high, but you will short the formation of a lower high in this situation, if confirmed with a rejection.