A head and shoulders pattern screams of the 4hr chart.  The problem is that a technical pattern can not predict the outcome of data flow that begins with the FOMC on Wednesday.  If the pair does break lower the head and shoulders pattern could be used to find a price target on a short.  But following the setup now would be an excuse for not thinking ahead of the FOMC, ECB, BOE and Non Farm Payroll.

Heading into the FOMC report the pair is still ranging between the .50 and .382 fibs from the May lows.  The 50 fib is acting as resistance at 1.5782 and the .382 fib at 1.5660 is earning it keep as support.  A break of either of these level could lead to a measured move.  If the FOMC and ECB remain on the sidelines this week the cross could push back towards last Thursdays support at 1.5460.  If the ECB delivers on its promise to add liquidity the pair could make a run to the 1.59 area.  In the mean time all there is to do is watch the head and shoulders pattern and think of the possibilities.

Sup     1.5660

Res      1.5782