The EUR/USD has formed inverted Head and Shoulders pattern and we could either a spike or breakout below the trendline. The pair is undecided at the moment
EUR/USD Daily and H4 trend are non-existant and the pair is trying to get its direction for the day. After a Type 2 trade (red arrows) the pair dropped and formed inverted head and shoulders pattern.
There is a probability that the EUR/USD might reject from the POC zone 1.2345-55 towards 1.2320 and 1.2289. Below 1.2289 target is 1.2256.
Above 1.2355, the EUR/USD could bounce towards 1.2390 (ATR high) and 1.2402. It is important that traders watch these levels, especially because both W H3 and W L3 haven’t been tested yet.
Nenad Kerkez aka Tarantula FX