A 4 hour pennant has formed on the EURUSD after the recent bearish price action. Below is a proposed trade plan for your review.
A break of the 4 hour high at 1.12953 would be the trigger for a bullish pullback potentially in London tonight or New York.
A break of the 4 hour low at 1.12336 would be indicative of bearish continuation.
The 61.8% Fibonacci pullback on this bearish move is at 1.13770 which aligns with previous lows in this region. The 50% Fibonacci pullback, which aligns with previous lows as well, is at the mid-point psychological level 1.13500.
Monthly M3 is at 1.1395, just above the 61.8 which should help with resistance in this region.
A reversal pattern within theses levels would be a viable entrance for bearish continuation after a bullish pullback.
Potential targets for the scenario described above…
Monthly Pivot is at 1.1204
The 1.214 Fib Extension is at 1.11851
The 1.382 Fib Extension is at 1.11466
Monthly M3 is at 1.1100 which aligns with the 1.618 Fibo Extension at 1.10929.
U.S. Dollar Analyst, FOREX.TODAY