EUR/USD Price Analysis: Daily chart shows a head-and-shoulders breakdown

EURUSD's daily chart shows a bullish-to-bearish trend change.
The pair risks extending the recent decline from 1.22.

Omkar Godbole FXStreet Contributor

EUR/USD closed 1.2049 on Tuesday, confirming a head-and-shoulders bearish reversal pattern on the daily chart.

The breakdown is backed by a below-50 or bearish reading on the 14-day Relative Strength Index and has created room for a sell-off to 1.1750 (target as per the measured move method).

However, Tuesday's candle carries a long lower wick, a sign of seller fatigue. As such, the pair could consolidate the near the neckline level near 1.2049 before charting deeper losses.

A close above Tuesday's high of 1.2088 would invalidate the bearish pattern.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.2038
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.2037

Trends
Daily SMA20	1.2149
Daily SMA50	1.2148
Daily SMA100	1.1962
Daily SMA200	1.1686

Levels
Previous Daily High	1.2088
Previous Daily Low	1.2012
Previous Weekly High	1.2183
Previous Weekly Low	1.2058
Previous Monthly High	1.235
Previous Monthly Low	1.2054
Daily Fibonacci 38.2%	1.2041
Daily Fibonacci 61.8%	1.2059
Daily Pivot Point S1	1.2003
Daily Pivot Point S2	1.1969
Daily Pivot Point S3	1.1927
Daily Pivot Point R1	1.2079
Daily Pivot Point R2	1.2122
Daily Pivot Point R3	1.2156

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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