The EURUSD Head and Shoulders has been on Forex trend topics for long days.
And the pattern is now formed and it's very clear and well designed.
We just have to understand that the fact that the pattern could break higher the next few days doesn't mean that the EUR will have an easy life above 1.09 resistance zone, there is a lot of resistances up there.
Actually the 1.09 is a major resistance zone and price could even go down again, so we have to be careful with the false break possibility.
The market is chopped inside 1.05/1.15 areas since 2015 February, it's more than 2 years of consolidation (look at Weekly chart).
Therefore, I'll be watching closely this nice H&S the next days, but even if we really break up I can see that we are having a difficult task to go until the top of weekly consolidation (1.1500 big number), a lot of volatility should be expected and that probably will stop out a lot of traders.
And the pattern is now formed and it's very clear and well designed.
We just have to understand that the fact that the pattern could break higher the next few days doesn't mean that the EUR will have an easy life above 1.09 resistance zone, there is a lot of resistances up there.
Actually the 1.09 is a major resistance zone and price could even go down again, so we have to be careful with the false break possibility.
The market is chopped inside 1.05/1.15 areas since 2015 February, it's more than 2 years of consolidation (look at Weekly chart).
Therefore, I'll be watching closely this nice H&S the next days, but even if we really break up I can see that we are having a difficult task to go until the top of weekly consolidation (1.1500 big number), a lot of volatility should be expected and that probably will stop out a lot of traders.