EUR/USD: reversal possible

The eurodollar pair has touched the top of its channel and pulled-back. It has formed an H&S reversal pattern at the highs on the 1-hour chart and it is in the process of breaking down through the neckline at 1.2528 and beginning a stronger impulse lower to perhaps 1.2470. The bearish interpretation is only negated by a break above the 1.2560 which would be expected to lead to a move up to 1.2600 and a re-touch of the top of the channel again.

Written by Forex4you