The Euro rallied almost uncontrollably since late-April against the U.S. Dollar and has only recently found significant selling pressure. We see now that considerably resistance may be forcing the pair from breaking above 1.4400. Currently EURUSD appears to be forming a "head-and-shoulders" formation, possibly signaling a reversal of the strong bullish stance the pair held.
If a turnaround does occur, we could see price action hit the level at which the "shoulders" bottomed out, at 1.3826. A more bearish move could see the pair hit 1.3718, a significant level of historical resistance at which the pair bounced off on at least four occasions since October.
