EURUSD Forming an Inverted Head&Shoulders

The H&S pattern is clearly visible on the 4 hour chart below, the pair formed a lower low and found resistance at the 1.3775 area and now it should form the right shoulder, one could try to pinpoint the new low and start a long position but the classic way of trading this pattern is to wait for the neckline to be broken(don’t forget the H&S hasn’t formed completly). Conservative  traders will even wait for the retrace to test the neckline thus having a better risk:reward trade.

The H&S pattern is clearly visible on the 4 hour chart below, the pair formed a lower low and found resistance at the 1.3775 area and now it should form the right shoulder, one could try to pinpoint the new low and start a long position but the classic way of trading this pattern is to wait for the neckline to be broken(don’t forget the H&S hasn’t formed completly). Conservative  traders will even wait for the retrace to test the neckline thus having a better risk:reward trade.

 

[NP][/NP]