Retracement completion
Here we consider EUR/USD currency pair on the H4 chart. The US dollar slid after Buiding Permits were released on Friday. It resulted in the price retracement inside the bearish trend channel. However, we expect the general trend to continue: as soon as the price approached the resistance line, bearish pattern “absorption” was formed. The retracement completion can be connected with the strong level crossing at 1.17487. This mark is strengthened by the double bottom pattern (marked in red ellipse). Stop Loss can be placed above the last fractal at 1.18767. Conservative traders are recommended to wait for the RSI-Bars oscillator confirmation: it is necessary to wait for the bullish trend to be completed at the support breakout 27.1330%. After order execution, Stop Loss is to be moved near the next fractal high. Thus, we are changing the probable profit/loss ratio to the breakeven point.
| Position | Sell |
| Sell stop | below 1.17487 |
| Stop loss | above 1.18767 |
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