Strategy: Pending Short
EURUSD has been locked in consolidation between the 50% and 61.8% Fibonacci retracements of the 4/12-6/7 downswing (at 1.2785 and 1.30, respectively) after confirming a Head and Shoulders bullish reversal chart formation. A Piercing Line candlestick pattern at near-term support hints that bullish momentum may be set to resume. Measuring the distance between the head and neckline of the H&S formation gives us a crude target of 1.3266 for the forthcoming advance, a level that corresponds to a horizontal support from March-April and would be the next target after a move above 1.30. We remain overall bearish and will continue to look for the current upswing to yield an attractive selling opportunity.
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