EUR/USD Builds Bullish Base with Inverse Head and Shoulders

In today’s technical analysis, we’re focusing on EUR/USD, which is building the foundation for a potentially strong buy signal. The chart structure reveals a classic inverse head and shoulders formation, highlighted in blue — a bullish reversal pattern. However, the setup is still incomplete, and confirmation is pending.

What makes this pattern particularly interesting is the location of the head, which is forming directly on a key horizontal support just below 1.15, marked with a purple line. This area has already demonstrated its strength, acting as a springboard for the current upward movement.

At the moment, the price is grappling with the neckline of the formation, marked with a yellow line. This level has served as both resistance last Friday and support on June 12th, further cementing its technical importance. A daily close above this yellow neckline would activate the bullish signal, paving the way for a move toward Thursday’s highs as the initial target.

On the other hand, if the price fails to break through and retreats, sellers may still have a shot at nullifying the setup. Until that neckline gives way, bulls will need to stay cautious and watch for definitive confirmation.

Source: https://www.axiory.com/analytics/technical-analysis/eur-usd-builds-bullish-base-with-inverse-head-and