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Head and Shoulders Pattern?

Mon, Jun 9 2008, 08:40 GMT
by Tatsuya Kawanishi

FXstreet.com


The EUR/USD (daily chart) shows a bullish momentum. 1.5350/60 is seen as a dynamic support (Neck line) and shoulders line is considered at 1.5800/10 level. MACD positive divergence was confirmed and a positive cross over is currently seen. This early morning in the European Session (at 07:30 GMT , June 9), the pair broke the shoulder line and got into the 1.5800 region. If we see further bullsih momentum, the pair mgiht form a head and shouilders pattern. Fisrt target would be 1.5900 level and then the previous high in April at 1.6019 while 1.5350/60 would be considered as a target if the pair shows a bearish momentum.

Resistance : 1.5900 and the previous high at 1.6019.
Support : 1.5800 (shoulders line) and the dynamic support (neck line) at 1.5350/60.

Chart 1




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