Sep 18 2018

EURUSD – Inverted head and shoulder on dailies

EURUSD:- On the daily chart, a price reversal pattern “Inverted Head and Shoulder”  is formed. The left Shoulder, the head and a Right shoulder are clearly visible on price chart. At present the pair is hovering close to the pattern neckline, which stood at somewhere around 1.1700. On a positive breakout of inverted Head and Shoulder neckline, the probable coming targets for EURUSD are 1.2000 to 1.2100. Upside targets projected by calculating the width from Neckline to head (1.1700 to 1.1300), a healthy 400 pips figure has come. EURUSD is trading well above its 50 Day Exponential moving average, indicating the continuation of trend. Immediate resistance of 200Day Simple Moving Average is seen at 1.1950, the only hurdle e before meeting the pattern desired targets (1.2000 to 1.2100). Momentum indicators are signaling neutral to bullish bias as RSI is above 50 mark and MACD too has marked its presence well above its zero-line. Any close below the neckline will negate the above view.