Today 15 November, Monday, the first day of the week, so a good pretext to analyse the weekly charts. I took a closer look at the EURUSD pair, on which the downward scenario that emerged after the defeat of the neckline of the Head and Shoulders formation has been realized for quite some time now.
- Head-and-shoulders formation (H&S) on EURUSD
- declines gain momentum
- Is 1.1150 the bearish target?
The theory assumes that the size of the formation, i.e. the distance between the “head” and the neckline, may determine the range of declines, which (if) they occur after the said neckline is overcome, may in the case amount to 700 pips.
On the daily chart, we can see that the price is currently heading to the demand zone located at the level of 1.1252 and the dynamics of these decreases would indicate that this is quite a realistic target. There I would expect an upward correction to the recently overcome support and resistance level of 1.1500. If the EURGBP pair were to meet the theoretical assumptions of such formations then the declines should reach 1.1150 ( see W1 chart).
I recommend a description of the strategy used for this analysis:PA+MACD
Invitation to fresh and live analyses: https://t.me/TradewithDargo
Tuesday, 16th of November 15:00 GMT – live trading session here: https://www.xm.com/live-player/basic
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