EURUSD – 1.1910 point of confluence?
On the attached EURUSD chart we have two important lines:
– the red line of the downward trend which extends from the current 2017 high set in September
– the blue horizontal line is the level that defines the hypothetical H&S shoulder line in case such a formation occurs.
At the intersection of these two lines a confluence point emerged. In the upcoming sessions it will definitely play an important role. If the price returns back and the right arm of the H&S formation is established there, we can expect declines.
If it breaks the level of 1.1910 and after re-testing will reject it as support, we can expect further increases. It is therefore important to keep a close eye on the behavior of the price at this level, and in the case of a PA signal in the form of a pinbar rejecting this level ( bearish or bullish), submit the appropriate order.