EURUSD: Continue to sell EUR rallies up to neckline of HandS
EURUSD
The sell off from the neckline of the large Head and Shoulders
top formation above it hasn't been particularly aggressive so
far, but the littlle rally attempt today has been severely
knocked back. DXY hasn't quite finished unwinding the recent
overbought condition after a recent near 2% spurt (see
comment) and will likely move sideways to mildly down for a
few days yet, finding buyers again at 94.41 and forcing EUR a
little higher here, potentially back to the neck line itself at
1.1665 at the peak of DXY weakness but likely no higher - look
to sell EUR into any further strength from here towards the
neckline with a stop 40 pips above and/or when 1.1545 is
broken on downside looking for a staggered decline back to a
minimum downside target at 1.1241. It's still likely to bounce
the next time it touches the lower parallel and to recoil
sharply from any encounters with the upper parallel (at best)
until the target is achieved. Continue to sell EUR rallies.
The sell off from the neckline of the large Head and Shoulders
top formation above it hasn't been particularly aggressive so
far, but the littlle rally attempt today has been severely
knocked back. DXY hasn't quite finished unwinding the recent
overbought condition after a recent near 2% spurt (see
comment) and will likely move sideways to mildly down for a
few days yet, finding buyers again at 94.41 and forcing EUR a
little higher here, potentially back to the neck line itself at
1.1665 at the peak of DXY weakness but likely no higher - look
to sell EUR into any further strength from here towards the
neckline with a stop 40 pips above and/or when 1.1545 is
broken on downside looking for a staggered decline back to a
minimum downside target at 1.1241. It's still likely to bounce
the next time it touches the lower parallel and to recoil
sharply from any encounters with the upper parallel (at best)
until the target is achieved. Continue to sell EUR rallies.