We will start this week with the analysis of the EURUSD, which for the past few days, cannot really find a direction. The price is often changing sides and is moving from iH&S to H&S patterns back and forth (blue and orange rectangles). Let's dig a little bit deeper, shall we?
The price had an awesome sell signal in the middle of August (in theory) but it got quickly denied with the use of the iH&S pattern. After this, the price came back above the major S/R level (yellow, 1.153), which in theory was very positive. In theory again, because as we can see now, the price is struggling with keeping the high levels here. New week starts with the hammer candle on that yellow area. Once this support will be definitely defended, that will be an ultra important buy signal. On the other hand, price closing a day below the 1.153, will a signal to go short.
With this morning optimism on Monday, currently we have bigger chances for a bounce. Buying on a support is one of the most important principles of the technical analysis, so maybe more traders will join this movement pulling price vastly higher.
