{"id":2446,"date":"2009-06-11T12:31:06","date_gmt":"2009-06-11T17:31:06","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2446"},"modified":"2009-06-11T12:31:06","modified_gmt":"2009-06-11T17:31:06","slug":"eurusd-forms-a-head-shoulders-pattern","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/11\/eurusd-forms-a-head-shoulders-pattern\/","title":{"rendered":"EUR\/USD Forms a Head & Shoulders Pattern"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD registered rising volume to the downside again, showing there is more interest on the sell-side these days.\u00a0 The currency pair managed to bounce off our 1st tier downtrend line, and is presently hovering just above 1.40 while knocking at our 2nd tier uptrend line.\u00a0 We notice a head a shoulders pattern forming, with yesterday\u2019s highs possibly serving as the peak of the right shoulder.\u00a0 Therefore, our 1st tier uptrend line takes on greater responsibility since it forms the neckline of the pattern.\u00a0 If the neckline breaks, we could witness accelerated losses to the downside.\u00a0 As for the upside, the 2nd tier downtrend line appears to present the most formidable obstacle to a reactivation of the uptrend.\u00a0 Unfortunately for bulls, the 2nd tier downtrend line hangs far in the distance, meaning we would likely see quite a bit of consolidation before a collision.<\/p>\n

Speaking of collisions, if the EUR\/USD continues to gravitate around our 2nd tier uptrend line, the inflection point of our 2nd tier uptrend and downtrend lines could serve as a breakout point.\u00a0 Once again, we are speaking of the distant future.\u00a0 As for now, the currency pair is exhibiting inconsistent behavior as the S&P inches up slowly.\u00a0 It seems the EUR\/USD may remain within a wide trading zone until either key resistances or supports are broken.\u00a0 While there is a near-term downtrend tendency in the currency pair, the medium-term uptrend has much more foundation at this time.<\/p>\n

The EU will release its industrial production number tomorrow.\u00a0 Since both German and French industrial production releases were well below analyst expectations this week, we wouldn\u2019t be surprised to see a similar showing in the EU\u2019s number.\u00a0 Hence, investors probably won\u2019t react too strongly if the data misses expectations.\u00a0 That being said, the data from the EU continues to come in mixed, resulting in a relative weakness in the Euro.\u00a0 Losses accelerated in the EUR\/GBP as we anticipated, and the downturn in this currency pair should carry on as long as Britain\u2019s economic data outperforms the EU\u2019s.<\/p>\n

Present Price: 1.4072<\/p>\n

Resistances: 1.4105, 1.4139, 1.4185, 1.4220, 1.4249<\/p>\n

Supports: 1.4056, 1.4020, 1.3964, 1.3921, 1.3862.<\/p>\n

Psychological: 1.40, 1.45<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD registered rising volume to the downside again, showing there is more interest on the sell-side these days.\u00a0 The currency pair managed to bounce off our 1st tier downtrend line, and is presently hovering just above 1.40 while knocking at our 2nd tier uptrend line.\u00a0 We notice a head a … <\/p>\n

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