EURUSD have technically made a bearish Shoulder-Head-Shoulder (SHS) with neckline at 1.1752. (see below Daily Chart)
But sometimes things are not always what it seemed.
SHS have typically said to be 70% accurate. That still means 30% of it won't happen. No one will know if EU will follow the 70% or 30% the next few days....
I always like to bring up this textbook example, AUDCAD,
In order of appearance from July 2020: (see yellow box in the chart)
1. (Bearish) SHS neckline 0.9500
2. (Bullish) Falling parallel channel
3. (Bullish) Double bottom neckline at 0.9561
4. (Bullish) Cup and Handle.
And yet, AUDCAD has NOT break it's yearly high despite 3 Bullish patterns.
And if it drops much further pass below 0.9425, it would have created a giant double Top.
I always tell myself, ""patterns can morph"".
But sometimes things are not always what it seemed.
SHS have typically said to be 70% accurate. That still means 30% of it won't happen. No one will know if EU will follow the 70% or 30% the next few days....
I always like to bring up this textbook example, AUDCAD,
In order of appearance from July 2020: (see yellow box in the chart)
1. (Bearish) SHS neckline 0.9500
2. (Bullish) Falling parallel channel
3. (Bullish) Double bottom neckline at 0.9561
4. (Bullish) Cup and Handle.
And yet, AUDCAD has NOT break it's yearly high despite 3 Bullish patterns.
And if it drops much further pass below 0.9425, it would have created a giant double Top.
I always tell myself, ""patterns can morph"".
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