Last week was a real roller-coaster for this pair. In the first half of the week we received a buy signal, which was triggered by the inverse head and shoulders pattern (yellow) and the breakout of the neckline (upper blue). That bullish action got quickly denied and became a false breakout pattern. Instead of the iH&S formation, we finally got a flag (green lines). EURUSD broke the lower line of this pattern, which brought us a proper sell signal.
The beginning of this week brought us a further slide, which broke an important horizontal support – the psychological barrier at 1.13 (lower blue) you can use to profit loss calculator . As long as we stay below this line, sentiment will remain negative. According to the price action rules, that area could soon be tested as a new resistance. Any bearish price action on the blue line should be treated as an invitation to go south.