The Strong Support around 1.1170 – 1.1190 Stopped The EUR/USD Move To The Downside

The lengthy consolidation period in that zone is hinting that a breakout below it won’t be easy and the pair might start moving north to 1.1210 – 1.1220 or even slightly higher than those levels.

That, in turn, makes me think that the pair might form a second shoulder of the head and shoulders figure. That, of course, is only a possible scenario that we should look out for. If it does happen, however, the next target of the corrective move to the downside would be at 1.1170 – 1.1150.

At this stage the direct renewal of the move north to 1.1490 – 1.1500 seems less likely to me, although at the end of the correction that is exactly what I expect to happen.