EUR/USD: technical analysis – July 30, 2012

The EUR/USD has climbed to the top of the channel on the 4-hour chart and formed a head and shoulders pattern. My preference is for a break below the neckline at the 1.2240 level leading to to a move all the way down to 1.2130. A break below the 1.2120 lows would confirm a bearish continuation to possibly new lows. On the upside we could see a surprise recovery back up to 1.2395 where the channel line lies.

Written by Forex4you