FX.co ★ Is EURUSD forming a right hand shoulder?

EURUSD is trading just below 1.20 after a strong bounce from 1.17 low. Our bounce target area was around 1.20-1.2050 where we now find important resistance. If price makes a top at current levels and turns towards 1.17, then we will have a complete formation of a head and shoulders pattern.

Red line -resistance

Green line - potential neckline support

The red line resistance at 1.21-1.2140 is of key importance. As long as price is below this level I expect prices to turn lower. EURUSD has many chances of reversal from current level. Major support remains at 1.17 area where we also find the green support trend line. Breaking below 1.17 will activated the head and shoulders pattern with a target of 1.13-1.10.