The EUR/USD has been bought on the dip that formed the right shoulder of the bullish SHS pattern also known as – Inverted Head and Shoulders. Holiday trading is always risky due to low liquidity, and lower liquidity might in turn, produce higher volatility. But at this point, the trading has been a bit quiet. The ATR for the last 14 days is only 62 pips, and the EUR/USD has made 29 by the time of writing this analysis. As long as the EUR/USD is kept above 1.1835 targets are 1.1890. 1.1905 and 1.1950. Have in mind the ATR projection high is 1.1917, so the pair needs to break above 1.1917 with a stronger momentum to reach the W H4 resistance. If it manages to touch and stay above 1.1906, 1.1950 could be achieved by the end of the week providing we don’t see any profit taking on long trades.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone).
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