EURUSD created higher high after a Head and Shoulders bullish reversal formation was detected since end Jun and early Jul 2010. The EURUSD have now taken out resistance and also the 61.8% Fibonacci retracement at 1.3000.
It start its bid to break the 76.4% Fibonacci retracement at 1.3262 during yesterday's trading. It's bid failed and the EURUSD closed tha day below 1.3262 at 1.3220.
The EURUSD was consolidating between 1.3180 - 1.3240 since 1515 GMT yesterday. This consolidation might be due to the projected resistance of the 76.4% Fibonacci retracement at 1.3262.
I would actually consider a short entry at 1.3135 with take profit at 1.3000, 1.2865 and open objective. Stop-loss is to be placed at 1.3270. This entry is only valid if and only if proper candlestick pattern is confirmed of a reversal. Candledtick pattern such as the hanging man, shooting star or even the inside bar will signal a possible reversal. Do look out out for the GBPUSD as well, if you are aggressive enough.
This trade recommendation is still inline with my overall long term bearish outlook for the EURUSD.
Happy trading....
