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 “……..