Bearish Leonardo, one of the newest harmonic patterns. Its parameters are (78.6,50,50,200) respectively. This pattern indicates a likelihood of a correction. In another words, it indicates a possible retracement at 78.6 fibonacci level.
The market has been struggling to cross the R1 and if you take a look at hourly chart the market has formed a new low, so I will expect an head and shoulder pattern to form too to satisfy our pattern.
The MACD is about to cross; that's another confirmation of the pattern. And the RSI is close to the oversold zone. It looks like there's a V shaped rejection formed when it approached the zone.
NB. Take a good look on economic calendar, fundamentals are crucial. Likelihood of EUR to weaken in the coming week
Thank you and happy trading :)
The market has been struggling to cross the R1 and if you take a look at hourly chart the market has formed a new low, so I will expect an head and shoulder pattern to form too to satisfy our pattern.
The MACD is about to cross; that's another confirmation of the pattern. And the RSI is close to the oversold zone. It looks like there's a V shaped rejection formed when it approached the zone.
NB. Take a good look on economic calendar, fundamentals are crucial. Likelihood of EUR to weaken in the coming week
Thank you and happy trading :)