EUR-USD Analysis – 04 June 2009

At the moment we can see forming of the figure “Head and Shoulders” in the H1 timeframe. That’s the sign of trend reversal.

The current situation is displayed on the graph below.

The blue line is the basic trend since 28th of May (line of support).
The green one is the probable “neckline”.
The purple line is the max probable price fro the “right shoulder”

The situation can develop in 2 ways:

1. The figure isn’t complete (we don’t see the “right shoulder”). Then we see the price rise to the 1.4310
2. The figure is complete. Then we see the price fall below the “neckline” and continue following

Now we’re waiting for the further development of the situation.