EURUSD is forming a potential Head & Shoulders pattern on the daily chart. A daily close below the neckline would streng

EURUSD is currently forming a potential Head & Shoulders topping pattern on the daily timeframe. This structure is important because a confirmed break below the neckline often signals a shift in market control and can open the door for further downside.

At this stage, the pattern is still developing, and confirmation depends on how price behaves around the neckline area.

Analysis Chart: https://www.mql5.com/en/channels/learning-forex-gold

Why the Neckline Matters

The neckline represents the key support level of the Head & Shoulders structure.
A daily close below this level, followed by downside continuation, would strengthen the bearish case and suggest increasing USD strength.

If the breakdown is confirmed, the pattern projects a move toward the measured downside zone.

Potential Downside Targets

If bearish momentum builds, the following areas are worth monitoring:

• Initial downside zones: ~1.1516 and ~1.1260

• Measured move / main target: ~1.1080–1.1050

This region is technically important due to confluence, including:

• ~50% Fibonacci retracement (~1.1053)

• Prior trendline and structural support

• Common pivot support levels

If weakness extends further, a deeper move toward ~1.0846 cannot be ruled out.

Key Resistance Levels

If EURUSD stabilizes or invalidates the pattern, resistance to watch includes:

• ~1.1660–1.1715

• Recent right-shoulder swing highs

A sustained move back above these zones would reduce immediate downside risk and suggest a return to range-type price action.

Fundamental Context

From a broader perspective, rising geopolitical uncertainty can support USD demand during periods of risk aversion. This fundamental backdrop may add pressure to EURUSD if technical weakness confirms.

What Would Change the Outlook

The bearish scenario would weaken if:

• Price holds above the neckline, and

• EURUSD reclaims key resistance or moving average areas on a daily closing basis

In that case, the market may shift back into consolidation rather than trending lower.

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⚠️ Disclaimer

This is my market analysis, shared for educational purposes only.
It is not financial advice or a trade recommendation. Always manage your risk accordingly and make your own trading decisions.