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"If we take a look at the daily candle chart you can see that last week’s rally is equidistant to the early August rally. This indicates that the market has completed an a,b,c,d harmonic move. " notes Thomas.

The completion point of this pattern coincides with a major area of resistance just below 1.1500 and with the weekly candle chart making it clear that EURUSD remains in a long-term downtrend, conditions are almost right to execute a short trade at the resistance zone. 

However Thomas adds: "Before entering into a short position it’s crucially important to be patient and wait for signs of price exhaustion. By this I mean a large tailed pin-bar candle, a bearish engulfing pattern or a double top reversal pattern on the hourly candle chart."