EURUSD - Descending channel top under test
Descending (blue) resistance line coming from 1.2080 is active and being tested once again. If broken the red resistance line is just above around 1.1900.
In case red resistance line is also overpassed, this might be a bullish signal to test 1.2080 again.
If price rebounds from the descending (blue) resistance line, I expect a move down to the (orange) neckline of SHS_ pattern. Pricing below the neckline (purple zone) shall confirm the downtrend.
I still expect a downtrend in the long run, trying to sell the lower highs below 1.2080 high of 8th September.
In case red resistance line is also overpassed, this might be a bullish signal to test 1.2080 again.
If price rebounds from the descending (blue) resistance line, I expect a move down to the (orange) neckline of SHS_ pattern. Pricing below the neckline (purple zone) shall confirm the downtrend.
I still expect a downtrend in the long run, trying to sell the lower highs below 1.2080 high of 8th September.
Next target below is SHS neckline at 1.1670.