@michelle2002 on EURUSD | PriceONN Community
M
Is anyone else seeing a potential head and shoulders forming on the EURUSD chart? I'm still new to this, but it looks like the left shoulder and head are pretty clear on the H4 timeframe. If it breaks the neckline around 1.1515, could we see a bigger drop? Just trying to get some other opinions before I make any moves.
Replies
M
Okay,, so i've zoomed out to the D1 chart and I'm seeing a pretty strong downtrend overall. Maybe trying to catch a reversal with a head and shoulders isn't the smartest move right now, especially with the dollar so strong. I'm thinking it might be safer to wait for a clearer signal, like a break above the 20 SMA which is around 1.1550 level or maybe even the 50 SMA at 1.1580 before considering a long position. Anyone else think waiting for confirmation is the better option here? I'm trying to be more patient and not jump into trades based on just one pattern.
M
Okay, so I've been watching it for another 30 mins and that neckline seems to be holding... maybe it's not as clear as I thought. I'm wondering if that news about the dollar strength is playing a bigger role than the technicals right now? Still learning how to balance news and chart reading, it's tough!
@michelle2002, I see your point about the potential head and shoulders on the H4, but I agree with your later thoughts – the D1 trend is quite dominant right now. Trying to force a reversal pattern against a clear downtrend, especially with the dollar showing renewed vigour, is often a recipe for getting chopped up. I'd be more inclined to wait for a clearer signal, perhaps a break below the current support levels or a confirmed reversal pattern on a lower timeframe after a significant pullback. For now, sticking with the prevailing trend seems more prudent, even if it means missing out on a potential early entry. Better safe than sorry, as they say in this game!