Following bounce from previous structure support
, pair has formed bullish head and shoulders
pattern. We have seen a hold of this level several times in the past. Price action has already broke and close above the patterns neckline, however RSI
is overbought which telling us that this might not be the best time to buy this pair just yet, so I will be waiting for a pullback down to around 1.66125 level that is also our neckline of the head and shoulders
pattern. As always, in order to prottect my capital I use ATR indicator to find the best place for my STOP LOSS orders, in case my analysis turns out to be wrong. This time i will place my ATR based stops below the right shoulder of our H&S
I remind you that this is just my vision about possible market movements. If you have your own, please share in comments. I will be glad to discuss with you. I will be very grateful for supporting my post by your LIKEs, if it's not so hard for you. :)
Plan your trade, Trade your plan and Good luck in the markets!!