EurUsd

Interesting chart formation building on the Daily chart. Whilst oscillators appear bearish the two current formations are suggesting a rally unfolding from this point.

1. SHS - Currently bouncing from the neckline to form the right shoulder ideally toward the 1.3400 zone
 (70.7//78.6 Fib retrace). Alternate SHS neckline may be seen slightly below 1.3020.

2. From a measured move perspective the recent leg lower completed in the 70.7//78.6 zone thus from a harmonic perspective we would be looking for price to extend into the reciprocal 127.2//141.4 Fib extension zone. The AB = CD alternate target comes in at 1.3614.

Given that the option barrier at 1.3100 was knocked out or expired without any follow through overnight I like the R/R of buying Eur/Usd into dips with a stop under last nights lows targeting the 1.3370/1.3400 zone in the short term.

Obviously as this is a daily chart and I am basing this current SHS structure off candle closes Ideally the trade would be to buy at 1.3111 with a stop under the secondary possible neckline at 1.3024.