Shoulders have formed on a potential H&S formation at 1.6750 and although the neckline is less than perfect, a break below 1.6110 should see an increase in bearish momentum. The market has managed to stay above the 100-day MA since April and this level is at 1.6239 today, right on where the market is currently trading. The short term picture looks quite oversold at the moment so selling rallies back towards 1.6400 looks like a sensible strategy.
