Under the past weeks I've been posting a dollar reversal scenario, this week we are closer to that output. EUR/USD broke a 6 month support uptrend on late September. Oscilators on 1W chart were showing enough strengh to break support line and it happend. It rallied and found support at August Peak defore correcting.
On this week a Head & Shoulders pattern was brought out into the light. Although a reversal is not yet confirmed until price manages to break neckline at 1.168. Signs of reversal are already piling up:
There are enough signs at this stage that support a US Dollar reversal. However time will tell if this is just a false breakout which leads to further deterioration, or a neckline breakout is confirmed. Fed Interest Rates are strongly driving dollar sentiment, along with NK tensions.
For more analysis visit www.investing.com/members/200755314
On this week a Head & Shoulders pattern was brought out into the light. Although a reversal is not yet confirmed until price manages to break neckline at 1.168. Signs of reversal are already piling up:
- 6 Month Support Broken late September
Rally to August Peak
Inverted Head & Shoulder pattern showed up this week
Inverted hammer candle on Friday 13th
Economic Data support a stronger dollar: ISM, PMI, ADP NFP, Jobless Claims, Unemployment Rate, PPI
There are enough signs at this stage that support a US Dollar reversal. However time will tell if this is just a false breakout which leads to further deterioration, or a neckline breakout is confirmed. Fed Interest Rates are strongly driving dollar sentiment, along with NK tensions.
For more analysis visit www.investing.com/members/200755314
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