EURUSD – Bullish reverse Head and Shoulders forming

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Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2448. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) found sellers. There has been little net change for the last four months. Levels below 1.1500 continue to attract buyers.

Weekly: Completed a bearish Elliott Wave count to the downside (5-waves completing at 1.1301). We are now assessed as being in the corrective AB-CD formation high. The measured move target is 1.1930, close to the 50% pullback level of 1.1928 (from 1.2556-1.1301). We look for price action to continue to be mixed and volatile.  Long-term bespoke resistance is seen at 1.1861 and is our main focus.

Intraday (4-hours): We look to be forming a bullish reverse Head and Shoulders pattern. There is ample scope for a further move to the downside before buyers re-emerge. Trend line support and the projected right shoulder is seen at 1.1491. The 61.8% pullback level of the last bullish move (1.1432-1.1621) is seen at 1.1504. This is our buy zone.

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