Hello and welcome to my Trade Idea of the currency pair EUR/USD.
Let's start with the Top Down Analysis.
Monthly: We see on the monthly timeframe a strong downtrend.
Weekly: The price touched the weekly bearish trendline. Overall the trend is bearish.
Daily: 1. The daily timeframe shows a head and shoulders pattern. 2. The price retested the trendline. 3. After the touch from the weekly support level the price retraced to the daily resistance. Prices can react very strong to the weekly support but since the price reacted very well to the daily resistance (pushed down), it is possible that this movement has an end. 4. The right shoulder touched the monthly resistance and pushed very strong down.
Have a nice day.
Let's start with the Top Down Analysis.
Monthly: We see on the monthly timeframe a strong downtrend.
Weekly: The price touched the weekly bearish trendline. Overall the trend is bearish.
Daily: 1. The daily timeframe shows a head and shoulders pattern. 2. The price retested the trendline. 3. After the touch from the weekly support level the price retraced to the daily resistance. Prices can react very strong to the weekly support but since the price reacted very well to the daily resistance (pushed down), it is possible that this movement has an end. 4. The right shoulder touched the monthly resistance and pushed very strong down.
Have a nice day.