Strategy: Pending Short
EURUSD has confirmed a Head and Shoulders bottom with a daily close above the formation’s neckline at 1.2570, the 38.2% Fibonacci retracement of the 4/12-6/7 downswing. The next layers of resistance line up at 1.2785 and 1.30, the 50% and 61.8% Fibs, respectively. However, measuring the distance between the head and neckline gives us a crude target of 1.3266 for the forthcoming advance, a level that corresponds to a horizontal support from March-April. We remain overall bearish and will treat the upswing as corrective, looking for an attractive selling opportunity ahead.
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