EUR/USD – Inverted Head and Shoulders – 4 Hour Chart

The EUR/USD has formed what appears to be and Inverted Head and Shoulders chart pattern. It is called “inverted”, because it is the upside version of the original Head and Shoulders pattern. The upper trend line is the neckline or confirmation line. A breakout of that line with a couple of bullish candles closing above it confirms the breakout. But after confirmation of the breakout, one should wait for the pullback to the neckline for a possible buy or long entry. If the price does break above the neckline and continues going higher, it has the road open all the way to the 1.3100 level.