EURUSD is in a bearish territory with the formation of lower lows and lower highs. The trend is expected to reverse from the resistance level priced at 1.1000. If the head and shoulders pattern is hit, I expected the bear run to continue moving downwards till the support level which is around 120 pips.

The ascending trendline has already broken out for breakout sell and the validation is complete. I will wait for the confluence of the retest of the trendline along with the resistance level being tapped.

There is no retracement in this scenario.

EMA 50 is bearish and the market might retest the EMA 50 at the resistance level forming a confluence. 

RSI is at 29. It needs to neutralize at the 50 level to align with the technical factors.

Head and shoulders on EURUSD

Jan 02 2024