# Potential Reversal on EUR/USD? (October 16, 2013)

Source: https://www.tradersway.com/resources/market-info/potential-reversal-on-eur-usd-october-16-2013/
Language: en
Updated: 2013-10-16

A complex head and shoulders pattern seems to be forming on EUR/USD’s 4-hour time frame, as the pair is testing the neckline around the 1.3500 handle.



However, stochastic is in the oversold region, hinting at a possible short-term bounce. If the pair is unable to break past the recent highs though, it might suggest that buying pressure is very weak and that a strong selloff might be in the cards.



![Potential Reversal on EUR/USD? (October 16, 2013)]



Waiting for a break of 1.3500 and setting a stop above 1.3600 for a short trade would be a 4:1 potential reward on risk with a target of the previous lows around 1.3100.



*By Kate Curtis from Trader’s Way*