Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/USD - Inverted Head and Shoulders on the 4H Chart

The EUR/USD has completed a double top and threatening a rising trendline and the 200-day simple moving average as the daily chart shows:


(eurusd daily chart, 5/19)

Will support hold?

In the 4H chart, you can see an inverse head and shoulders forming after the market found at least temporary support at the aforementioned support factors.


(eurusd 4h chart, 5/19)

Breakout:
A break above 1.3733 breaks above the neckline, and opens up the 1.3775 pivot in the near-term. 

RSI-Stochastic
If the market gets to the 1.3775 pivot and the 4H RSI is around 60 with the stochastic around 80, we should look out for a bearish continuation attempt. 

If traders push EUR/USD above 1.38, and the 4H RSI pushes to 70, then we might have to shelve the bearish outlook and consider the market to have remained bullish. 

Bearish outlook: If however, the market holds below 1.38, and preferably below 1.3375, there is a good chance, traders will remain bearish on EUR/USD, and extend the current bearish swing from 1.3993, with downside risk toward the 1.3475-80 support area, and 2014-lows.