Disliked{quote} True.. it's been absolutely a long term head&shoulders pattern building up. It's clear and visible like those ones in trading elementary school book. However FUNDAMENTAL has always higher priority over technical analysis so please mind your tight stops on Thursday ECB. It might be a choppy market and wider spreads on ECB may easly trigger your stops only to see the market goes in your direction later on. Anyway... good luck with it...Ignored
Agree, EU H&S pattern setup reminds me of the wedge we saw on GBPJPY a few month back.
As seen in the blue rectangle it took days, if not weeks for the initial wedge to bloom out. I would suggest GJ has a lot more volatility then EU and with a setup this visibly obvious, I would be careful entering on the neckline without a substantial distance to a stoploss, with a followup strategy to add short, in the likely event that it pullbacks 25pips below the neckline to 70-80pips above the neckline. Best of luck
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