A repeating pattern might offer a short entry on EUR
In March, the price rallied vertically. I market the top point with a yellow circle. After that, it dropped and created small consolidation market by white rectangle . From there, it continued lower.
In May, this zone was re-tested in a similar fashion - creating a top, a consolidation shortly below it and further drop down the line.
Right now, we are re-testing that consolidation and it might offer a short-entry opportunity.
A major difference is, that back in May, we broke through several swing highs at the same time. This time, we've broken only one as there wasn't sufficient time to create more significant highs. However, we are breaking 50 MA & EMA this time.
I placed short stop-market order below the latest green candle in 8h chart.
Please mind that EUR is fundamentally bearish pair. ECB is the most hesitant to raise rates and EU is paying a lot of money for oil which powers all other industries.
In May, this zone was re-tested in a similar fashion - creating a top, a consolidation shortly below it and further drop down the line.
Right now, we are re-testing that consolidation and it might offer a short-entry opportunity.
A major difference is, that back in May, we broke through several swing highs at the same time. This time, we've broken only one as there wasn't sufficient time to create more significant highs. However, we are breaking 50 MA & EMA this time.
I placed short stop-market order below the latest green candle in 8h chart.
Please mind that EUR is fundamentally bearish pair. ECB is the most hesitant to raise rates and EU is paying a lot of money for oil which powers all other industries.