EUR/USD Potential 12-Month Head & Shoulders Forming
EURUSD
We have to be on guard for a potential upside breakout in the EUR/USD as we are forming a falling wedge at key support @ 1.16. (NFP May Be The Catalyst)
Keep in mind that 1.16 was the top of the 2-year EUR/USD range from 2015-2017 that held price with strong resistance. This area is now acting as new support, and one could argue we have a double bottom currently in play.
I believe we have potential to re-test the 1.20 handle from this falling wedge, but ultimately I believe we are currently in the process of developing a 12-month Head & Shoulders Pattern.
Also, we are now at an extreme psychological turning point because the majority of market participants believe that the (April - June) USD rally was just a short squeeze within a dominant bear market...
If this bounce in the Euro fails to make new highs, and we do indeed form this head & shoulders pattern; we would then have sufficient momentum to take out 1.16 to the downside.
Summary:
1. Tactical Long To 1.2
2. Watch For Potential (Right Shoulder)
3. Head & Shoulders Would Generate Enough Momentum To Break 1.16
4. Will Probably Take Around 6 Months To Play Out....
EURUSD
We have to be on guard for a potential upside breakout in the EUR/USD as we are forming a falling wedge at key support @ 1.16. (NFP May Be The Catalyst)
Keep in mind that 1.16 was the top of the 2-year EUR/USD range from 2015-2017 that held price with strong resistance. This area is now acting as new support, and one could argue we have a double bottom currently in play.
I believe we have potential to re-test the 1.20 handle from this falling wedge, but ultimately I believe we are currently in the process of developing a 12-month Head & Shoulders Pattern.
Also, we are now at an extreme psychological turning point because the majority of market participants believe that the (April - June) USD rally was just a short squeeze within a dominant bear market...
If this bounce in the Euro fails to make new highs, and we do indeed form this head & shoulders pattern; we would then have sufficient momentum to take out 1.16 to the downside.
Summary:
1. Tactical Long To 1.2
2. Watch For Potential (Right Shoulder)
3. Head & Shoulders Would Generate Enough Momentum To Break 1.16
4. Will Probably Take Around 6 Months To Play Out....