In my earlier post, we discussed higher bases for Euro on a week to week basis. A look at the current daily and 4-hour chart suggests that risk for a downward move has appeared.
Bearish pennant likely in EURUSD daily
Daily momentum suggests that a bearish pennant is likely. Despite the higer bases, no credible bullish reversal pattern has appeared.
Bearish pennant capped by potential double top; confluence support
On the 4-hour chart, a rising wedge capped by a potential double top has now appeared. It is this wedge that resembles the body of the bearish pennant.
Bulls might want to buy if confluence support holds. Big trend bears should do well to wait for a pullback. Any pullback not surpassing this week’s high will make the setup even more bearish when it starts to resemble a head-and-shoulder.
Stay tuned.
