EURUSD has confirmed an inverse Head and Shoulders bullish reversal setup following a daily close above 1.2570, the 38.2% Fibonacci retracement of the 4/12-6/7 downswing. From here, initial resistance lines up at 1.2785 and 1.30, the 50% and 61.8% retracement levels, respectively. However, measuring the distance between the head and neckline gives a crude target of 1.3266, a level that corresponds to a horizontal support from March-April. My overall bias remains bearish and I will look for the upward correction to yield an attractive selling opportunity down the road.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
