EUR/USD Price Analysis: H&S breakdown validates bearish reversal, 1.0600 on cards

• A breakdown of the H&S formation has underpinned the greenback bulls.
• The 50- and 200-period EMAs are on the verge of showing a death cross.
• The RSI (14) has shifted into a bearish range of 20.0-40.00.

The EUR/USD pair is trading back and forth in a narrow range of 1.0644-1.0654 in the Asian session. The shared currency bulls have witnessed an extreme sell-off on Wednesday after slipping below the round level support of 1.0700.

A breakdown of the Head and Shoulder pattern on an hourly scale is strengthening the greenback bulls for the upcoming trading sessions. Usually, the formation of the above-mentioned chart pattern displays a prolonged inventory distribution in which the institutional investors shift their investors to the retail participants.

A death cross is highly expected from the asset as the 50- and 200-period Exponential Moving Averages (EMAs) are set to discover a bearish crossover around 1.0700.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which strengthens the greenback bulls.

A pullback move towards the 200-EMA at 1.0686 will be an optimal selling opportunity for the bargain sellers, which will drag the asset towards Wednesday’s low at 1.0623. A breach of the latter will unleash the greenback bulls for more downside towards May 20 high at 1.0600.

On the flip side, the eurozone bulls could regain their glory if the asset oversteps Tuesday’s high at 1.0747. This will drive the asset towards Monday’s high at 1.0786, followed by May 13 low at 1.0809.

EUR/USD hourly chart