EUR has hit daily XOP and now the major question is whether we get reverse H&S and correspondingly deep right arm pullback. For bulls it is indifferent situation as anyway we wait for the pullback for entry, while bears here do not have the context to sell. Bears could consider setups only on intraday charts:
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On 4H chart we can't consider recent performance as DRPO because of too big difference between the tops. But we have here divergence and K-support area around 1.0140-1.0190:
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On 1H chart we have a kind of H&S pattern and price already stands at 5/8 right arm resistance. It means that short-term bearish background is ready. But we still have one tricky moment - bullish divergence. So, if you consider short entry here with 1.02 target - think about this "additional" moment. Still, stop could be placed very close and potential loss will be small anyway.
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