EUR/USD H4 Forecast - 12 JUN 2009

H4 graph

Correction continues by forming the right shoulder of “head and shoulders”
trend-turning figure (denoted with blue lines). The shoulder’s upper bound
is passing through level 1.4160, which is found to be its peak, and hence
downtrend is starting to develop from there now. The target of downtrend
is set to support level 1.3550, but the pair should get under intermediate
support 1.3810 (neckline) before in order to execute the figure.
And then the pair gets lowering target at level 1.3550.
Perhaps this level won’t offer any support, in such case the pair
will get to support 1.3400.

Resistances are at level 1.4160 (once again) and at current level 1.4070.
In case of upwards motion, we can’t say that downtrend is changed
to uptrend until the pair rises above resistance level 1.4180,
if so, it will get to key resistance 1.4370–1.4430.