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EUR/USD - Stalking the Pullback after a Head and Shoulders

We started the week with a completed head and shoulders pattern in EUR/USD. This signals further downside in $EURUSD, but so far, it has found support around 1.1580 and has pulled back to test the neckline of the H&S pattern.

EUR/USD 1H Chart

(click to enlarge)

The Pullback:
- The 1H chart shows EUR/USD pulling back up from 1.1580 to almost 1.1660. 
- This is right under the neckline of the head and shoulders pattern, and we are already seeing some resistance here as the rally slowed down. 
- Also, the 1H RSI held mostly under 60, which shows maintenance of the prevailing bearish momentum.
- There is a chance that price will now pivot from this 1.1650-1.1660 area back down towards the 1.1580 support, with risk of further downside.
Next Resistance:
- However, if price pushes above 1.1665 and the RSI above 60, we could be looking at a more significant bullish correction. This means, we can still treat EUR/USD as bearish in the medium-term, and only bullish in the short-term.
- In this scenario, the next key resistance will be around 1.1725, which is a previous support pivot.
- Furthermore, price would be testing the 200-hour Simple Moving Average if it gets back up around 1.1725. 

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