EUR/USD negative sentiment remains. New short after a correction

EUR/USD 19.12.2016 H4 chart.

Long term downtrend and short term downward movement.

Break below the neckline of a Head and Shoulders formation, in this case trend confirming formation.

Price below resistances – diagonal and horizontal.

Technical indicators:

Price below SMA50 and SMA200 in a bearish formation – sell

DeM(14) in oversold zone below 0,3 – increased likelihood for a little correction

We should wait a correction around 1.0510 to minimize risk.

SL 1.0570

Alternative scenario: Break above the resistances will cancel the negative formation and price will likely go and test the shoulder of the H&S around levels 1,0665.

Jr. Trader Nikolay Georgiev

 Varchev Traders

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