EUR/USD Price Analysis: Head-and-shoulders on 4H chart

• EUR/USD has created an H&S pattern on the 4-hour chart. 
• A breakdown would open the doors for a re-test of levels below 1.10.

EUR/USD looks to have formed a head-and-shoulders (H&S) pattern on the 4-hour chart. 

Acceptance below the neckline support, currently at 1.1196, would confirm breakdown or bearish reversal pattern and open the doors to 1.0970. 

On the flip side, a move above the left shoulder's high of 1.1315 would invalidate the lower highs setup on the 4-hour chart and restore the immediate bullish setup. That will likely yield a re-test of the recent high of 1.1422. 

However, a drop to the neckline support at 1.1196 looks likely as the daily chart MACD histogram has crossed into a bearish territory below zero. In addition, the long upper wick attached to the current weekly candle is suggestive of buyer exhaustion. 

4-hour chart

Daily chart

Trend: Bearish

Technical levels