EURUSD heads into tonight's US jobs data with its chart interestingly placed

As the Daily chart above shows, yesterday's peak was neatly at the support of the recent major triangle pattern. If the Euro starts to fall away from here, it will constitute a classic pattern "retest" where old support acts as new resistance.

4 hour chart 

Non Farm Payrolls are notorious for creating market volatility so caution is required. However, a typical chart strategy is to use shorter term charts to create entry strategies for a longer term setup.

In this case, the 4 hour chart is showing signs of a potential head and shoulder pattern. The slow stochastic below the chart is also making lower highs.

A move back above the right shoulder would negate the head and shoulder. However a situation where price stays below this level and then breaks clearly below the 20 day moving average might indicate lower prices to come.


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