First of all, I must say that yes, on the 4 hour chart it looks like a larger head and shoulders pattern and there is room to the downside.
This is where this support/flip zone level comes into play and why it is very important. This zone is where we are testing, the 1.2285 zone.
It is a very important support/flip zone and on the 2 hour, we have had multiple swings on this downtrend.
A Double Bottom shows us that we may be losing steam in this trend. Why? Because we are not making any more lower lows to confirm lower highs.
The trade idea here would be a long on the 2 hour if we break above 1.2330 and close above it. This would also break above the previous lower high now nullifying the downtrend on this chart.
Take profit on the 2 hour chart would be the 1.2410 zone.
This is where this support/flip zone level comes into play and why it is very important. This zone is where we are testing, the 1.2285 zone.
It is a very important support/flip zone and on the 2 hour, we have had multiple swings on this downtrend.
A Double Bottom shows us that we may be losing steam in this trend. Why? Because we are not making any more lower lows to confirm lower highs.
The trade idea here would be a long on the 2 hour if we break above 1.2330 and close above it. This would also break above the previous lower high now nullifying the downtrend on this chart.
Take profit on the 2 hour chart would be the 1.2410 zone.