EUR/USD: Bearish Setup Confirmed After Head and Shoulders Breaks

[cryptobro]

Hi guys!

The chart shows a Three Drives pattern followed by a Head and Shoulders formation, both signaling potential bearish continuation.

The Three Drives Pattern:
The price completed three consecutive bullish drives, each showing signs of exhaustion. This structure often indicates a weakening uptrend and prepares the ground for a larger reversal.

The Head and Shoulders Pattern:
After the third drive, the market formed a clear head and shoulders structure, confirming distribution at the top. The neckline has already been broken, suggesting a shift from bullish to bearish sentiment.

Current Structure and Expectation:
Price is now retesting the neckline area after the breakdown. A rejection from this level would likely trigger a deeper decline toward the highlighted target zone, which aligns with previous demand and the flip area.

Target:
The projected target of the head and shoulders pattern falls near 1.12500, matching the lower pink zone on the chart.

In summary, unless the market decisively reclaims the neckline and trendline support, EUR/USD remains biased to the downside, with the 1.1250 area as the next key level to watch.

[alex10]

Classic pattern in motion — next target likely near 1.05 zone.

[Nahid Hossen]

Head & shoulders confirmation adds weight to the bearish outlook. ️