Key Technical Observations
1. Inverse Head & Shoulders Formation
The marked swing structure suggests:
Left Shoulder: Around May 13
Head: Deeper low near 1.1690
Right Shoulder: Current retest zone near 1.1705–1.1710
This pattern usually signals:
seller exhaustion,
accumulation,
and a potential bullish breakout if neckline support holds.
2. Strong Retest Zone
The red horizontal support around 1.1704–1.1710 is critical.
Current price action is:
pulling back into support,
respecting the neckline area,
and attempting to form higher lows.
This creates a classic:
breakout → retest → continuation setup.
3. Bullish Projection
The drawn target zone projects upside toward:
1.1800 – 1.1820
This aligns with:
previous swing highs,
measured move projection from the inverse H&S,
and psychological resistance near 1.1800.
4. Momentum Structure
The sequence of rounded swing markings highlights:
repeated cyclical rotations,
decreasing bearish momentum,
and increasingly aggressive bullish recoveries.
The latest decline also looks weaker compared with prior selloffs.
Trading Bias
Bullish Scenario
If price:
holds above 1.1704,
and breaks local resistance near 1.1720–1.1730,
then buyers may push toward:
1.1760
1.1785
1.1820 target zone.
Bearish Invalidation
A clean breakdown below:
1.1700
would weaken the setup and could lead to:
1.1680
1.1660 retests.
Overall Interpretation
The chart currently favors a:
bullish continuation/reversal bias
with a high-probability retest entry structure.
The setup is strongest if:
volume increases on the bounce,
USD weakens broadly,
and EUR/USD maintains higher lows above neckline support.
1. Inverse Head & Shoulders Formation
The marked swing structure suggests:
Left Shoulder: Around May 13
Head: Deeper low near 1.1690
Right Shoulder: Current retest zone near 1.1705–1.1710
This pattern usually signals:
seller exhaustion,
accumulation,
and a potential bullish breakout if neckline support holds.
2. Strong Retest Zone
The red horizontal support around 1.1704–1.1710 is critical.
Current price action is:
pulling back into support,
respecting the neckline area,
and attempting to form higher lows.
This creates a classic:
breakout → retest → continuation setup.
3. Bullish Projection
The drawn target zone projects upside toward:
1.1800 – 1.1820
This aligns with:
previous swing highs,
measured move projection from the inverse H&S,
and psychological resistance near 1.1800.
4. Momentum Structure
The sequence of rounded swing markings highlights:
repeated cyclical rotations,
decreasing bearish momentum,
and increasingly aggressive bullish recoveries.
The latest decline also looks weaker compared with prior selloffs.
Trading Bias
Bullish Scenario
If price:
holds above 1.1704,
and breaks local resistance near 1.1720–1.1730,
then buyers may push toward:
1.1760
1.1785
1.1820 target zone.
Bearish Invalidation
A clean breakdown below:
1.1700
would weaken the setup and could lead to:
1.1680
1.1660 retests.
Overall Interpretation
The chart currently favors a:
bullish continuation/reversal bias
with a high-probability retest entry structure.
The setup is strongest if:
volume increases on the bounce,
USD weakens broadly,
and EUR/USD maintains higher lows above neckline support.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.