EUR/USD: downside possible

The EUR/USD pair has risen and reached resistance from the top of a major down-sloping channel. It has formed a bearish shooting star on the hourly and it could roll-over and fall to support from the trend-line at 1.2220. A break above the 1.2324 highs would be confirm a breakout and target 1.2380 initially where the monthly pivot is situated. There may be an inverted head and shoulders at the lows and the key reversal last Friday indicated the possibility of a trend-reversal up, longer-term.

Written by Forex4you