Price had broken out from long-term range and had a strong close above prior resistance level. Price range of .8-.81 was tested twice. Price tested .8-.80500 first and found strong resistance that brought it back to .78 support level. This first move created the left shoulder of the expected Head and Shoulders pattern. The second test of the price range formed the Head where price found resistance at .81 and support back at the .78 neckline. Price is currently supported at the neckline and we should see another test of .8 to begin the right shoulder. If price breaks and closes below neckline before forming right shoulder then the pattern is invalidated in the medium term. Biased long on this pair if price remains above prior long-term range structure
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Head and Shoulders pattern invalidated but still expecting a bullish move from current support zone.