In previous posts we mentioned several times the bearish potential of the Head and Shoulders pattern and the key support that if broken would activate the bearish pattern. Price continues to respect the neckline support and as long as this is the case, bulls have hopes for a move higher.

At 1.1750 we continue to find the neckline support. For price to continue lower on a weekly basis, bears need to break below 1.1750 in order to reach the head and shoulder target of around 1.10-1.12. As long as price respects this support, bulls have hopes for a move higher. The Head and shoulders pattern gets cancelled only if price breaks above the May high of 1.2265.