EUR/USD did exactly what was expected – created a right shoulder of the iH&S pattern, broke the neckline and went higher. It all started with the false breakout from the descending triangle (yellow colour). Sentiment is back into a positive one and will stay this way, as long as we will hold above the orange support.
Setup on the EUR/USD is nice but the two main stars on Thursday are Indices and Bitcoin! First, we will start with the indices, S&P 500 to be precise. Price broke the combination of a dynamic and the horizontal support, which activates a super important sell signal. With this momentum, we should see the S&P 500 on the lows from February and April relatively soon.
Bitcoin is also bearish and we were expecting this drop for a while! The price bounced from the upper line of the descending triangle pattern and broke the lower line of the flag. The target is obvious – 5900 USD. What will happen later, depends from the price action on this level.
We need a bit of patience, again.