The dollar once again is in a losing position against the euro and the yen, providing a good opportunity for profit.
EUR / USD H4 our expectations: Downward medium-term trend, breakthrough of former resistance, ongoing support. Possibility for long positions.
Alternative scenario: Lowering the price below the main support will send the pair down and the next monitoring area will be a local minimum of around 1.063.
Comment: The rise in price and the successful test after a breakout of support around 1,078 formed the technical model Head and Shoulders. The sheer line of the figure also coincides with the diagonal resistance of the medium-term downward movement, which makes it even more significant. Currently, the price is in the process of showing and moving away from the area, but I expect a test of some, which will activate the formation. From there, we take long positions, with a stop brought out below the shoulder of the figure. The target is located around 1.105, where the area coincides with 50% of Fibo’s last downward movement.
In this zone, we will monitor the price action signal and, in the event of a break, we will hold the position, with the next observation point peaking at about 1.15
Stop Loss: 1.072
Trader Aleksandar Kumanov