EUR/USD analysis for February 01, 2018

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Recently, the EUR/USD pair has been trading upwards. The price tested the level of 1.2478. Anyway, according to the 30M time – frame, I found a potential head and shoulders pattern in creation, which is a sign that buying looks risky. I also found a successful rejection of reistance at the price of 1.2450, which is another sign of weakness. My advice is to watch for potential selling opportunities. The first downward target is set at the price of 1.2390. Anyway, to confirm head and shoulders patterrn you need to watch for a breakout of the neckline at the price of 1.2380. If you see a breakout of the neckline, a downward target will be set at the price of 1.2300.

Resistance levels:

R1: 1.2463

R2: 1.2513

R3: 1.2550

Support levels:

S1: 1.2375

S2: 1.2337

S3: 1.2290

Trading recommendations for today: watch for potential selling opportunities.

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