Hi mate, today's update is dedicated precisely to this subject. Shortly speaking - I prefer to wait for pullback and see what will happen. For details - keep reading.
So, our trading plan this week is dedicated to reversal process around 1.1065 area, at least this is how we initially expected this and discussed in weekly report. In fact, everything is in place, except the pattern that will trigger reversal. That's what we've discussed yesterday.
The result of previous trading session is reversal candle on daily chart. It means that maybe this is it, what we were looking for - reversal pattern. Appearing of reversal type of action in this place absolutely irrational for bearish setup. Market is not at any support. In fact, price stands in free space. But the way how price is moving right now absolutely doesn't correspond to normal bearish behavior. It means that indeed, market starts forming bullish reversal pattern:
EUR Daily chart
Unfortunately guys, here is some problem with FPA server - today I provide charts through google disk.
ON 4H chart action mostly reminds a kind of double bottom pattern or something:
EUR 4H Chart
Finally 1H gives us more information. Take a look at the price shape - it has started from strong collapse, then retracement stands and then market has tried to continue downward action but it couldn't not. This inability was replaced by strong rally. This is typical combination for reversal. And the pattern that we could get is reverse H&S, with double head.
Taking in consideration this pattern and its nice harmony - now we could wait for right arm's bottom around 1.11 area. This expectation will give us chance to check the bullish strength as well, because we need gradual, slow retracement, but not a collapse again. If everything will be OK and may be we even will get "222" Buy pattern - then it will be precisely the pattern that we're watching for.
1H EUR Chart