EU has been on a low resistance liquidity run since bouncing off the resistance(TR) at 1.08900 due to the fundamentals released this week.
On the monthly view, the chart is in a downtrend and has broken the trendline support at 1.10000 and also the neckline at 1.06 but has since retested the trendline and is now ready for a further downside.
On the daily timeframe, a H&S can be spotted with a pretty shaped out neckline at 1.07000 which the run this previous week has broken.
There are two expectations from this:
1. I expect the price to retest the neckline and further move to the next demand zone at 1.05000
2. The price might range back to the imbalances created from the run at 1.08000 before attempting the 1.05000 DZ.
What are your thoughts?
On the monthly view, the chart is in a downtrend and has broken the trendline support at 1.10000 and also the neckline at 1.06 but has since retested the trendline and is now ready for a further downside.
On the daily timeframe, a H&S can be spotted with a pretty shaped out neckline at 1.07000 which the run this previous week has broken.
There are two expectations from this:
1. I expect the price to retest the neckline and further move to the next demand zone at 1.05000
2. The price might range back to the imbalances created from the run at 1.08000 before attempting the 1.05000 DZ.
What are your thoughts?