as we can see here on the EUR/USD
chart that the market has previously been trending in a strong downtrend for a while now. as of the current market state, we are seeing that price has settled and has stopped moving downwards and has now created a head and shoulders
pattern, a sign of the market creating a very strong structure on the daily timeframe
, meaning that the market should be resting at that area and could possibly have a huge breakout to either to the upside or the downside, this is happening at an area in which is a strong supply level
so the market has great volatility
in these areas. so when watching this market make sure you keep in mind fundamentals which can affect the direction and move to lower timeframes to look for more short term structure and entries when trading this market.