Forex: EUR/USD capped at 1.5090, shaping a H&S formation

By IBTimes Staff Reporter | December 04 2009 5:12 AM

FXstreet.com (Barcelona) - Euro recovery attempt from 1.5035 low in Asian session has been capped at 1.5090 and, according to Ian Coleman, technical analyst at Turtle Index shaping a head and shoulders pattern on hourly charts.

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The neckline of the mentioned H&S pattern is located at 1.5029, says Coleman: We are now stuck in a sideways channel (15144 - 15032). With a large doji yesterday the bias is for the downside and I think the move higher this morning has formed a Head and Shoulders formation. A break of the neckline at 1.5029 should signal a move lower to 14900-14850 area.

Support levels, at the moment lie at 1.5030 (Dec 2/3 low) and below here, 1.5000 and 1.4960/70

(Nov 30/ Dec 1 low). On the upside, resistance levels lie at 1.5100/10 and above here 1.5445 (Nov 25/26 high) and 1.5180.

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