On the 4-hr chart, we have a bigger inverse head and shoulder pattern and the right shoulder is under progress. Inside the right shoulder, we have a smaller head and shoulder formation with neckline at 1.3158 levels.
So the two scenarios that could unfold are -
So the two scenarios that could unfold are -
- Rebound from 1.3158 followed by a break above 1.3338 - in which case we are like to go higher to inverse head and shoulder neckline level of 1.3466 levels.
- Break below 1.3158 - in this case psychological level of 1.30 could be put to test again
