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EUR/USD Price Analysis: Teasing head-and-shoulders breakdown

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  • EUR/USD has charted a bearish reversal pattern on the daily chart. 
  • A close below 1.1770 would confirm the trend change. 

EUR/USD is trading near the head-and-shoulders (H&S) neckline support of 1.1770 at press time. 

A close below the support line would confirm H&S breakdown or a bullish-to-bearish trend change and open the doors for 1.1530 (target as per the measured move method). 

The pair has already dived out of a trendline rising from May 14 and July 10 lows. The bullish trendline's downside break is backed by a below-50 or bearish reading on the 14-day relative strength index. 

As such, a  head-and-shoulders breakdown looks likely. The bias would turn bullish if the pair rises above 1.1918 (Sept. 10 high). 

Daily chart

EUR/USD Price Analysis: Teasing head-and-shoulders breakdown

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price 1.177
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 1.1771
Trends
Daily SMA20 1.1842
Daily SMA50 1.1765
Daily SMA100 1.1446
Daily SMA200 1.1225
Levels
Previous Daily High 1.1872
Previous Daily Low 1.1732
Previous Weekly High 1.1901
Previous Weekly Low 1.1738
Previous Monthly High 1.1966
Previous Monthly Low 1.1696
Daily Fibonacci 38.2% 1.1785
Daily Fibonacci 61.8% 1.1818
Daily Pivot Point S1 1.1711
Daily Pivot Point S2 1.1652
Daily Pivot Point S3 1.1571
Daily Pivot Point R1 1.1851
Daily Pivot Point R2 1.1932
Daily Pivot Point R3 1.1991

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Underlying constructive bias in the euro remains underpinned by auspicious results from domestic fundamentals which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis.
EUR/USD has managed to regain some composure following new multi-week lows in the 1.1720 region recorded earlier in the session, always on the back of the moderate recovery in the greenback.
might enter a sell position for a quick scalping
more reason to go bearish on this pair

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