EURUSD is currently influenced by two forces: the head and shoulders pattern and the bearish engulfing candlestick from March 15th.
However, it is also moving sideways due to market indecision in recent weeks. Looking at the 4-hour chart for future price analysis, the price appears to be moving between two levels, 1.0692 and 1.0535, as shown in the dark grey box on the chart. I expect the next price movement to bounce off the upper end of the sideways range at 1.06900, which is also a previous resistance level and the 61.80 Fibonacci level, before heading downwards towards the previous support level at 1.05350. If it breaks this support level, the head and shoulders pattern will be confirmed and we can expect further downward movement. If it fails to break the support level, it will move in another wave within the sideways range.
If it doesn't bounce down from 1.06900, its first target will be at 1.07503, and then continue to rise. This is because the 4-hour chart shows a triple bottom pattern with slight divergence in momentum indicators.
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If it doesn't bounce down from 1.06900, its first target will be at 1.07503, and then continue to rise. This is because the 4-hour chart shows a triple bottom pattern with slight divergence in momentum indicators.
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Let me know your thoughts in the comments, and show your support by liking the idea.
Please follow if you're interested in more ideas like this.
Your support is greatly appreciated!