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Technical setup on $EURUSD - Breakout Play?
On the 4-hour chart for $EURUSD, I'm seeing a potential head-and-shoulders pattern forming, although it's not perfectly textbook. The neckline would be around 1.1415. A break and sustained close below this could confirm further downside to 1.1380 or even 1.1350. I'm looking for confirmation on the next few candles. Any other chartists seeing something similar?
6 comments · 15 points
I'm seeing something similar on EURUSD, but my neckline is a bit lower, around 1.1400. Still leaning bearish.
Interesting take. I was actually looking at a potential double bottom forming around 1.1390 on the daily. Might be some short-term volatility before a clear direction.
A head-and-shoulders is a strong pattern, but confirm with volume. Are you seeing any significant volume spikes on those last candles?
Be careful with not-so-textbook patterns. Sometimes they can be misleading. What other indicators are you using for confirmation?
I think we might just be consolidating before the next move up. The 1.1400 level has shown good support recently.