A head and shoulders (H&S) pattern is shown on this time frame. The right shoulder - not formed properly as yet - appears to be exhausting at this time. Price is struggling to stay afloat. This predicts nothing. The position is one to watch for those trading on lower time frames. Higher time frame perspectives are a must. This perspective is looking well ahead. So...
The rally has posted an exhaustion count on the daily chart.
Price action has formed an expanding wedge formation.
Our medium term bias is bearish below 0.8919 towards 0.8826.
There is scope for mild buying at the open but gains should be limited.
Preferred trade is to sell into rallies.
Intraday signals are far from strong.
We look to Sell at...
Here we can see heavy resistance around the 110.400 region. I personally entered short positions on this after seeing the exhaustion presented to us on the H1 time frame around 7pm - 1am here in London. A much safer entrance would have been at the closure of 2am H4 candle as you may notice the shooting star formation emerging. With my riskier entry I did however...
price has been dropping steadily over last 2 years but has not made a new lower low below 1.2502 and as a result rejection candle above 50/200 sma line formed in september.
Entered one daily inverse head and shoulders with targets set previous highs