EUR/USD Technical Analysis: Upside favored on inverse head-and-shoulders breakout

Omkar Godbole FXStreet Contributor

The inverse head-and-shoulders breakout seen in EUR/USD's 4-hour chart validates the bullish view put forward by the falling channel breakout on Monday and represents a bearish-to-bullish trend change (transition from lower highs and lower lows to higher highs and higher lows).

As a result, the common currency could rise to 1.14 in the next day or two. The bullish case would weaken if the spot finds acceptance under the inverse head-and-shoulders neckline, currently at 1.1330.

4-hour chart

Trend: Bullish

1. R3 1.1459
2. R2 1.1409
3. R1 1.1376
PP 1.1326
1. S1 1.1293
2. S2 1.1243
3. S3 1.121

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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