Whether or not the pair forms the right shoulder is anyone’s guess. Furthermore, without a daily close below 1.1670, we can’t technically call it a pattern. Until that day comes, this isn’t much more than a talking point.
For now, I’m going to keep an eye on how price reacts to 1.1875. A signal from current levels could take us back down to 1.1670 support and perhaps 1.1490.
Alternatively, a daily close (5 pm EST) above 1.1875 would (at minimum) delay the scenario I just described. It would also expose the next key resistance at 1.2040.
Keep in mind that the FOMC meeting minutes are to be released today at 2 pm EST. Then on Thursday, we have PPI and U.S. unemployment claims at 8:30 am EST followed by Friday’s CPI and retail sales at the same time.