EURUSD Head and Shoulders Formation

THE BIG PICTURE: This is the daily chart of EURUSD with the reverse head and shoulders pattern. At the moment of this publishing it is still premature to consider the formation complete. The anticipation is to have the market close above the neckline. If this occurs then it sets up for a higher likelihood that the Euro will start to trade toward the 1.1250 target zone. The time to trade it will be once the market can close above the neckline.
THE TECHNICAL STANDPOINT: Once the market is able to close above the neckline then the trade can be triggered somewhere around the 1.08 level with a stop just beneath the right shoulder at about the 1.0480 level. The target based on the measurement of the tip of the head to the neckline measures about four hundred pips. With a risk of about 300 pips and a target of about 400 pips this sets up for a reward risk ratio of about 1.43 to 1