FxWirePro: EUR/USD forms inverse head and shoulder pattern, any break above 1.17200 confirms further bullishness

Pattern formed  Inverse Head and shoulder pattern

Major resistance - 1.17200

EURUSD consolidates in narrow range between 1.16179 and 1.17098 for past three trading days. US and China trade tensions are supporting US dollar. US has imposed tariff of 10% on $200 billion worth of goods and China has retaliate by imposing 5-10% for $60 billion US goods. US 2 year yield at 10 year high and 10 year regained sharply above 3%. The spread between US 10 year and US 2 year is near 2007 low. The spread between German bund and 10 year US yield is widening and is at decade high at 2.56%.

On the lower side, near term major support is around 1.1660 and any violation below targets 1.1615/1.1570/1.1530/1.1500.

The near term major resistance is around 1.1750 and any violation above will take the pair to next level till 1.1800/1.1818. Any violation above 1.1750 confirms further bullishness.

It is good to buy above 1.17200 with SL around 1.16800 for the TP of 1.1818/1.1845.