For now, EUR/USD has defended the 100-day SMA and January low near 1.0520/1.0480, causing an initial bounce. The Société Générale economists say a recovery to 1.0800 would invalidate the Head and Shoulders pattern.
A break below 1.0520/1.0480 would trigger a prolonged bearish move
“It is worth noting that the pair is trading within a possible Head and Shoulders formation; the pattern to the downside if a break below the neckline materializes. The recent pivot top near 1.0800 is resistance to short term, and must be recovered to negate the formation.”
“If the pair breaks the breakout of the neckline at 1.0520/1.0480, an extended move lower is not ruled out. next targets would be at 1.0330 and the September 2022 high at 1.0220/1.0200.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
