EURUSD rallied decisively after confirming an inverse Head and Shoulders bottom in early July. Prices are now poised to challenge resistance at 1.3266, the 76.4% Fibonacci retracement of the 4/12-6/7 downswing as well as the upside target implied by measuring the distance between the head and neckline of the Head and Shoulders formation. My bias remains bearish – a view reinforced by emerging negative RSI divergence – and I will look for the current upswing to yield an attractive selling opportunity in the days ahead.
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