EURUSD went up as the week started but then it broke down significantly. We can notice that the break to the downside came after a ‘head & shoulder’ pattern formation on the daily chart.
Based on the move after the head & shoulder, the pair could drop further to the 1330 region, especially if Fibonacci 38.2 level is broken on its way.
However, when we look at the weekly chart, this downward movement can be considered as a retrachment after such a parabolic upward move for most part of the year.
Trading preference
At this time, the only preference is on the short side. However, we can look for supportive candles on the daily and even weekly chart around Fibonacci 38.2 level and 50.0 level. A supportive candle especially around 1330 level where Fibo 50.0 level coincides can be a good opportunity to buy this pair.
