Eurusd had been moving in a descending channel since February 2022 and completely respecting its support and resistance level. Recently it had a breakout of the channel with strong bullish engulfing candle. It also formed an inverse head and shoulders pattern at the end of the channel which indicates a possible trend reversal from bearish to bullish trend.
Following are the Bullish and Bearish signs of EURUSD;
Bullish Signs:
1. HH & HL on daily Timeframe.
2. Breakout of long descending channel (after 8 months)
3. Inverse Head and Shoulders pattern indicating trend reversal.
4. Support from EMA50
5. Euro index (EXY) bounced from a strong weekly support line with bullish harmonics pattern.
Bearish Signs:
1. Very strong resistance at 1.036
2. Seasonals do not favor November as it has been second worst performing month for EurUsd in past 10 years
3. Might be going for a retest of the neckline of H&S for confirmation of its projections.
Following are the Bullish and Bearish signs of EURUSD;
Bullish Signs:
1. HH & HL on daily Timeframe.
2. Breakout of long descending channel (after 8 months)
3. Inverse Head and Shoulders pattern indicating trend reversal.
4. Support from EMA50
5. Euro index (EXY) bounced from a strong weekly support line with bullish harmonics pattern.
Bearish Signs:
1. Very strong resistance at 1.036
2. Seasonals do not favor November as it has been second worst performing month for EurUsd in past 10 years
3. Might be going for a retest of the neckline of H&S for confirmation of its projections.