EU Analysis

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Daily: After a steep correction rally, the pair has found resistance at 1.725 region as it printed a shooting star formation followed by bearish engulfing signal that pushed it towards support 1.155. The pair has formed a new Lower High as it rejected 1.165 with a shooting star followed by a bearish marubozu that closed extremely bearish just above 1.155 region. A clear break below 1.155 would expose the pair to downside 1.1425 & 1.13. Alternatively, if the pair manage to close back above 1.155 region, the pair would be considered as stuck within the range of 1.155 - 1.1725 and would be expected to continue to bounce within the range.
4H: On the 4 hour chart we can clearly see the formation of a H&S with the pair sitting right on the neckline 1.155. A clear break and retest of 1.155 would confirm the H&S pattern and expose the pair to downside target at 1.1425 & 1.1375 (Measured Objective). Alternatively, a failed break below 1.155 would invalidate the H&S pattern and indicate that the pair is stuck within the daily range of 1.155 - 1.1725.