EU Weekly Analysis

1. The neckline of the H&S is broken with a strong bearish Marubozu. From the previous weeks, we can also see that it is extremely bearish as it form the 3 Black Crow pattern indicating strong bearish momentum.
2. The pair has closed above the Psychological Level 1.4, indicating that it found some minor support at this region and a retracement might took place. As the pair has closed extremely bearish, I will be expecting a minor pullback before a continuation to 1.12 region. However, nothing is confirmed at this stage yet, more confirmation is needed on the H4 Chart to confirm whether will it be a minor or a major pullback.
3. If 1.14 is broken, the next downside target is 1.12 region. A clear break below 1.12 region will target the next downside at 1.05 region which is also the measured objective of the H&S. On the flipside, if the pair rejected 1.14 it would target the upside at 1.15 & 1.155. Further up, a break above 1.1775 would negate the bearish view in this pair.
Bias
Long-term: Bearish
Short-term: Bearish