Risk Disclaimer

Risk Disclaimer: Trading is risky! Never trade money you can not afford to lose! Site content is only personal opinion and never a Trade Recommendation! Futhermore the blog content needs to get reviewed to analyse whether it is up-to-date and still appropriate in the authors view.

Daily Head and Shoulder pattern

EURUSD Technical Chart Analysis 


Head and Shoulder Analyzed



Head and shoulder pattern
Daily Head and shoulder pattern


The daily Head and Shoulder pattern got triggered due to the gap down last week. On Monday, May 7, we had a nice retest of the neckline, which acted as resistance and led to a sharp price drop. The market took out the low of January 23 (stop fishing) and so far respected the support zone (analysed in 


Neckline break 


Below the market is the weekly trend line (low of June 2010 and January 2012) which could act as support. The classical target of the Head and Shoulder is the length of the head (A-B) projected from the neckline break (1.3061) at about 1.2551, which would also clear out the striking low from January at 1.2624.
However, it is to early to make  these assumptions and further price action will give hints of what to expect.

No comments:

Post a Comment

Back to top