EUR-USD held below 1.44 and formed a Double Top in the early US session
Looking at the 4H chart, EUR/USD formed an inverted head and shoulders pattern, but has yet to confirm it as a Bottom.
In early US session Wednesday, it was stuck below 1.44, despite making a high at 1.4408.
The 1.4280 mark is important and cracked during the session, let's see if support can cause a pullback from the 1.4450-1.4480 area.
Also wa e have to see if the RSI breaks below 40. This would much invalidate the formation of a Head and Shoulder.
However, it is making higher highs and higher lows, so with the current decline stays above 1.42, we still have possible "nesting" to the upside.
Nesting is an Elliott Wave count terminology describing attempts to create motive waves that is more complex than the conventional 5-wave count.
A clear break below 1.42 targets the 1.4054 August-low. The 4H chart shows the Bullish anticipation.
Notice that the RSI is stuck below 60, and if the market is now falling back below 1.4280, 1.4250, it is then in consolidation with a slight possibility of upwards nesting if the market holds above 1.42. Stay tuned...
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.