NEW IDEA FOR EURUSD "EUR/USD Technical Analysis: Head & Shoulders Reversal Pattern in Focus"
In the 4-hour timeframe, EUR/USD has formed a clear Head & Shoulders reversal pattern, indicating a potential bullish breakout. The neckline is positioned at 1.0578, which acts as a key resistance level. A confirmed breakout above this level may lead to further upside movement.
Key Levels:
Neckline Resistance: 1.0578
The price needs to break and sustain above this level to confirm the bullish reversal.
First Target (50% Fibonacci Retracement): 1.0719
If the breakout is successful, this level acts as the first profit target.
Second Target (100% Fibonacci Retracement): 1.0824
A continuation of bullish momentum may push the price toward this level.
Indicators:
Ichimoku Cloud: The price is still near the cloud but is showing early signs of attempting a bullish breakout.
Alligator Indicator: A crossover is forming, supporting the possibility of upward momentum if confirmed.
Conclusion:
If EUR/USD breaks above the neckline at 1.0578, the next targets are 1.0719 and potentially 1.0824. However, failure to sustain above the neckline could result in a retest of lower levels. Monitoring the breakout confirmation is crucial for short-term traders.
