Greetings everybody,
It looks like that our doubts on upside perspective are not in vain. Indeed we've got minor upside continuation above recent top, so dollar index grabbers have been completed, but price has failed proceed above 1.15.
Our "222" Sell pattern has been formed, although downside reversal was a bit earlier than we've suggested.
Anyway, overall price action here doesn't match normal bullish market. Although we do not yet final confirmation on paper, as price stands above 1.1280 lows still and H&S has not been crushed totally. But, things that we see right now tell about it at high degree.
It means that now we have chain of downside targets and the first one is AB=CD @ 1.12 lows.
On 4H chart is another pattern that could be formed later with 1.1146 target. This is butterfly. Also take a look that EUR was not able to reach minor COP target:
On 1H chart we have big triangle, which actually is just a pennant pattern on weekly. That's the reason why price has not quite reached 1.1440 1.27 butterfly target. So, here we're watching for two moments - drop below "C" point within few hours and breaking of triangle down should become important steps in confirmation of our bearish scenario. Thus, currently it is difficult to find any reasons to go long.
