Last Week, EURUSD rallied and then surged higher on Friday due to UK Election Victory for the Conservative Party. However, the higher prices then got rejected at resistance level provided by the long term down trend line and a significant figure of 1.1200.
When we look at the daily time frame, we can see that the pair made a higher high and then turned around and formed a shooting star and closed lower below the trend line. This is an indication that the bearish prices are ahead.
Trading entry ideas
Even if the market wants to go higher and that the current bearish action is simply a correction, it needs to correct lower before it can go up. Therefore, we can look into lower time frames for a possible short entry.
On H1 time frame we can see the possibility of an emerging Head & Shoulders pattern.
Therefore, if EURUSD rallies again and then if bullish prices once again gets rejected around the right shoulder as shown in the above chart, it is a selling opportunity.
Disclaimer: Our analysis and forecasts given on this website are just our point of view about the market. It is not a trading signal or investment advice.