Update: Possible EURUSD Head And Shoulders Formation

After the neckline of the “head and shoulders” figure was broken the target for the bearish case in EURUSD was breached and the figure has been completed. In March 26th post the target I set was 1.2690 which after several updates has been lowered to 1.2620. Although not exactly reached, the EURUSD min was 1.2635 (vs. 1.2620 expected), the accuracy of this analysis tool was high – 15 pips.

What to expect next with the pair? Level 1.2620 is strong support and consolidation around this level is possible. However if the situation in Europe quickly deteriorates breakthrough under 1.2620 could dive the euro to June 2010 low at 1.2150.