Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

Is EUR/USD Ready to Complete a Head and Shoulders?

EUR/USD traded lower on Wednesday, after hitting resistance fractionally below the 1.1300 barrier. Overall, the pair looks to have formed a complex head and shoulders formation, but until it gets completed, we prefer to stay sidelined. We would start examining the case of a bearish reversal upon a break below 1.1215.

Such a move would also drive the rate below the neckline of the H&S pattern and may encourage the bears to dive towards the 1.1148 zone, defined as a support by the inside swing high of May 29th. The rate could rebound after testing that territory, but if the recovery stays limited below or near the neckline, we would see decent chances for the bears to jump back into the action and push for another leg south. They could even overcome the 1.1148 barrier, something that may extend the decline towards the 1.1085 level, marked by an intraday swing low formed on May 29th.

Turning our gaze to our short-term oscillators, we see that the RSI turned down again after hitting resistance near its 50 line, while the MACD, already negative has just touched its toe below its trigger line. Both indicators detect negative momentum and increase the chances for this pair to drift further south. However, as we already noted, we prefer to wait for a dip below 1.1215 before we get confident on the downside.

On the upside, a clear rebound above 1.1300 would keep us sidelined for a while more, although we may see a decent recovery within the boundaries of the currently formed consolidative pattern. The bulls may initially aim for yesterday’s high at 1.1353, the break of which may allow advances towards the peak of June 10th, at 1.1423.

EUR/USD 4-hour chart technical analysis


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.