09.09.201823:06 Forex Analysis & Reviews: Technical analysis of EUR/USD for September 10, 2018

Long-term review

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EUR/USD stopped the decline on Friday just above the important support area of 1.1550-1.1530. As long as EUR/USD is above this area we can take advantage of the bullish side of the market as we might be forming an inverted head and shoulders pattern with a neckline at 1.1730. Above 1.1660 this scenario becomes our primary one. Until then, the chances of a bearish Head and shoulders pattern are equally high.

Black rectangle - neckline support

Yellow rectangle - long-term support

Red lines - H&S target extension

It is clear that support from the H&S pattern and from previous highs and lows is at 1.1530-1.1550. Breaking below this area will open the way for a move towards 1.14-1.1350. Resistance is at recent highs at 1.1660 area. Breaking above it will open the way for another challenge of the 1.1730-1.1750 resistance that if broken will take us back to 1.20.

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