Cabana Capitals Blog Forex Broker EUR/USD: the pair formed head and shoulder pattern.

EUR/USD: the pair formed head and shoulder pattern.

EUR/USD: the pair formed head and shoulder pattern. post thumbnail image

General overview: The EUR/USD again falls back towards its lower side this time. The pair opened with the buy-side in the previous week and again starts falling from a certain point. The pair start falling and continues towards the selling side in the market. The market creates bearish momentum in the market.  We can expect a further fall in the market. The pair creates the higher lower swings in previous weeks as of now we can go towards the selling side and creates the bearish way in the market. We find the breakout at level 1.2000 level as the continuation of the sell-side proceeding in the market but, on the other hand, we can see that bulls are trying to make major pullback the market, but for a time while We can see that bears are leading in the game, and cause major supply pressure in the market. After the NFP data we can realize that USD creates its major power towards the supply zone in the economy, although it’s a major currency government put major investment towards the employment side for the time being.

Technical analysis: From the technical point of view we can say that market makes the lower side in the market. The market is creating the bearish marabuzo on the daily chart .the major and minor EMA lines are also supporting the pair to fall further on .after forming the rounding bottom the pair find its breakout point and keep falling. On the 4 hourly chart market makes its lower lows in the market. We can see head and shoulder patterns in the chart and fall after breakout level at 1.1960. As in the RSI we can see the situation oversold and further upside movement expected but on a low basis.  The intraday traders can also go for the sell-side as the indicators also fall towards the sell-side below 50 level as well as MACD also supporting the selling side below zero level. the support of the market is 1.1871 followed 1.1821 resistances is 1.1862 followed 1.1812.

Trade idea: Our traders will move towards the sell-side at level 1.1920 targets will be 1.1842 -1802 stop loss will be 1.2000.

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