EURUSD : Inverted Head & Shoulders Under Development !

As shown on the 4 hour chart below , the EURUSD was rejected from the weekly and monthly support at the 1.3706 levels , looks like the pair is forming a head and shoulders pattern , which is bullish reversal , added to that , momentum indicators (MACD + RSI ) show that the bearish momentum is fading away , neckline comes at the 1.3875 levels , a clear break on a 4 hour basis should target the 1.4050 levels a breach will aim the 1.4225 levels , further upside will look for the 1.4400 levels……

On the downside , support comes at the 1.3706 levels , sustained trading below this level would open 1.3642 , If this level fails , a free fall towards the 1. 3585/1.3471 levels will be in sight….

Recommendations  : Buying the pair with a 4 hour closing above the 1.3875 levels targeting the 1.4050 levels & 1.4200 levels , stop loss below 1.3800 levels..

Another scenario : Buy the pair between 1.3700 – 1.3750 levels , target at the 1.3900 , 1.4000 , stop below 1.3642 levels ” do it on your own risk “……..

Views: 680


Comment by Yasser sorour on April 2, 2014 at 3:39pm

Greet Analysis , thanks MR. Haitham 

Comment by Davaanyam on April 3, 2014 at 7:05am

Hi Mr. Haitham!  Your analysis results are more carefully with high probability. Good luck on your work,

Comment by Michel Miles on April 3, 2014 at 1:49pm

Hi Mr. Haitham! Give us your point of view after Draghi speach pls! Your scenario mutated?

Comment by Haitham653 on April 3, 2014 at 4:44pm

Hi Michel............

The last support level is 1.3693.... losing this level on a daily basis will open 1.3585 levels , 

Note that today's close is critical ....I'm gonna update the pair tomorrow morning on a daily basis...

Comment by Haitham653 on April 3, 2014 at 4:50pm

support and resistance levels on the daily chart :

1.3471 , 1.3585 , 1.3693 , 1.3701 , 1.3720 , 1.3805 -today's  high - not confirmed yet , 1.3827 , 1.3845 , 1.3996...............

Comment by Michel Miles on April 3, 2014 at 6:21pm

Thanks a lot! ;)

Comment by Michel Miles on April 3, 2014 at 6:25pm

A daily close above 1.3720 could be better!

Comment by Haitham653 on April 3, 2014 at 6:51pm

Any daily close below 1.3748 will keep the pair under pressure ...this is only for today.......eyes on a further decline in the near future...........

Comment by Bero on April 3, 2014 at 6:55pm

Haitham hiii...what do you think about shorting GBPJPY ?

Comment by Haitham653 on April 3, 2014 at 8:03pm

Hi Bero....

As you see on the chart below , the pair was rejected from the daily resistance 172.86 with bearish divergence on the 4 hour chart , neckline comes at the 172.30 levels , losing this level on a 4 hour basis would open 170.94/171.47 levels where strong rebound is expected ... 

A daily close above 172.86 should open 173.60 ahead of 174.80 levels.....

Note that as long as the daily close is above the 171.30 levels, the pair will remain bullish , a daily close below 171.30 will turn outlook neutral for retesting 169.55 levels before the next possible rise.............


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