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.
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.
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