Last week was spent in a tight consolidation, a pattern commonly known to price action traders as barbwire. Looking at the overall picture, I am fairly confident of a large downside move starting next week, with a 60-70% probability. I will be watching to see if there is any confirmation to short.
An inverted H&S pattern spotted on the daily chart of the EUR/USD points to signs of bullish pressure. I will be trading to capitalize on the upside.
Daily chart of Euro Stoxx 50
Nearing resistance at the top of the range
Will it be able to break out?
Euro Stoxx 50 is a stock index of Eurozone stocks designed by Stoxx Ltd, an index provider owned by Deutsche Börse and SIX Group. According to Stoxx, its goal is “to provide a blue-chip representation of Supersector leaders in the Eurozone”.
Let’s wait for it to get there first.
This is projected based on the most probable scenario.
Note: Probable does not mean 100%
A great chance for a long scalp, profit target around the old swing high of 305-306.
Entry can be on the close of the bar indicated by the arrow or the next day.
