{"id":115490,"date":"2017-10-27T07:38:33","date_gmt":"2017-10-27T11:38:33","guid":{"rendered":"http:\/\/countingpips.com\/?p=115490"},"modified":"2018-06-01T15:53:37","modified_gmt":"2018-06-01T15:53:37","slug":"eurusd-head-and-shoulders-model-starting-to-form-on-the-daily-timeframe","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/eurusd-head-and-shoulders-model-starting-to-form-on-the-daily-timeframe\/","title":{"rendered":"EURUSD: head and shoulders model starting to form on the daily timeframe"},"content":{"rendered":"<div id=\"inves-1478990467\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">October 27, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong>Previous:<\/strong><\/p>\n<p>On Thursday the 26<sup>th<\/sup>\u00a0of October, trading on the euro\/dollar pair closed down. The euro came under pressure after the ECB announced its decision to extend its QE program by 9 months. ECB head Mario Draghi cited concerns over relatively low inflation and added that some significant stimulus measures would be required to keep it up.<\/p>\n<p>In the US session, the euro continued to fall after news that the US House of Representatives had followed the Senate in approving the 2018 budget. Now, President Trump is free to bring in the reforms he promised. By the end of the day, the euro had collapsed to 1.1641.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:45 France: consumer confidence (Oct);<\/li>\n<li>10:15 Eurozone: ECB\u2019s Praet speech;<\/li>\n<li>14:00 Eurozone: ECB\u2019s Weidman speech;<\/li>\n<li>15:30 USA: GDP annualised (Q3), personal consumption expenditure prices (Q3);<\/li>\n<li>17:00 USA: Michigan consumer sentiment index (Oct);<\/li>\n<li>20:00 USA: Baker Hughes US oil rig count.<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2017\/10\/eur_271017.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD rate on the hourly. Source: TradingView<\/p>\n<p>The euro bulls are still disappointed by the ECB\u2019s decision to extend its QE program by 9 months with purchases at 30bn EUR a month. Furthermore, the US dollar continued to strengthen its position after the US Congress approved the 2018 budget.<\/p><div id=\"inves-530736760\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>So, what can we expect from the euro now?<\/p>\n<p>From a high of 1.1838, the rate has dropped 1.79% (212 pips). At the time of writing, the euro is trading at 1.1634.<\/p>\n<p>The price is approaching the D3 line (the maximum price divergence on the hourly timeframe). If we see some aggressive sales, we could see the price go off the charts to the D3 \u2013 D4 range. Upon reaching the D3 MA line, the price will try to return to the LB balance line. Since all MA lines are currently looking downwards, there\u2019s a risk of the euro dropping lower by way of a saw-tooth model (with three lows).<\/p>\n<p>In the event of a rebound, the price won\u2019t make it to the LB line on the first attempt. It could do so with some fundamentals to help it along, but today\u2019s economic calendar is rather bare. After a sharp drop of more than 200 pips, a new waves of sales is starting from the D2 line. It currently coincides with the 45<sup>th<\/sup>\u00a0degree. It will be lower than this when we get to the US session.<\/p>\n<p>Since the neckline (1.1662) was broken through, a head and shoulders model has started to form. For this, I\u2019ve highlighted three targets: 1.1595, 1.1515, and 1.1330.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: head and shoulders model starting to form on the daily timeframe<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Thursday the 26th\u00a0of October, trading on the euro\/dollar pair closed down. The euro came under pressure after the ECB announced its decision to extend its QE program by 9 months. ECB head Mario Draghi cited concerns over relatively low inflation and added that some significant stimulus measures would be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-115490","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=115490"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115490\/revisions"}],"predecessor-version":[{"id":115491,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115490\/revisions\/115491"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=115490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=115490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=115490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}