EURUSD – In the past week, the formation of iH&S turned out to be very fruitful, the implementation of which resulted in over 250p increases (I described this in the weekend summary). Currently, the quotations are just below the 1.1620 level where the neck line of the next iH&S formation is located, this time much larger and its possible implementation could result in further increases even to the level of 1.1975. What is worth paying attention to is the active upward divergence on D1 supporting the growth scenario.
But before the pair would continue to grow, the neckline at 1.1620, must be effectively defeated.
Meanwhile, when we look at H4, the bearish divergence between price and MACD suggests declines, at least in the next dozen or so hours. So we have to deal with conflicting signals – on D1 bullish divergence and on H4 bearish. Bearing in mind that the signals from the higher TF are usually stronger, we can expect a return to increases after temporary declines.
