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Thursday, July 7, 2011

EUR/USD - S/H/S conflicts

As I was fooling around with this chart, looking for support, resistance ect. I found it interesting

that we have several Shoulder/Head/Shoulder patterns Two bearish (the S2/H/S2 has been invalidated) and one bullish inverted S/H/S. The bullish inverted S/H/S pattern is close to be invalidated too, which leaves us with the bearish S1/H/S1 top. The rise from 140.75 also stalled perfectly at Neckline1 also adding confidence in the bearish picture. All that said, in the short term we are in no mans land, this could be a bear, but is certainly also could be a bull. All we need is confirmation. A break below 141 and the bear is winning, while a break above 145.77 gives the bulls the upper hand.

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