Red lines- Head and Shoulders pattern
Black line- neckline support
EURUSD is trading around 1.0548. After yesterday's sell off from 1.0650, EURUSD has stopped the decline around 1.0548. He we find important horizontal support and we should also note the potential Head and Shoulders pattern. Price has formed the two shoulders and the head. In order for the bearish signal to get activated we need to see price break below the neckline support. The neckline support is at 1.0530. Bulls must defend this level. Failure to do so would imply more downside should be expected.