TDMarkets

DXY, EUR/GBP, EUR/USD: H&S Patterns Underway: Levels & Targets

DXY, EUR/GBP, EUR/USD: H&S Patterns Underway: Levels & Targets

On February 7, 2017, Posted by , In Uncategorized, By , , With No Comments

x93 x92 x91

DXY breaks neckline and begins oversold bounce.

• Price action ending January broke down below technical support and the neckline of a head and shoulders top at the round number of 100.

• There is technical risk of a larger retracement to the 200d moving average support at about 98.

• Provided the DXY remains below the right shoulder highs and 50d moving average of 101-101.50, this technical top pattern remains influential and bearish in the near term.

EUR/GBP forming right shoulder

• EUR/GBP began rolling over from a lower high starting in February. This may be the right shoulder of a head and shoulders top.

• Strong support at .83300 from the neckline, trend line and 50d moving average must be broken to confirm the top.

A break below support suggests EUR/GBP will fall to about .78500.

EUR/USD attempts to confirm H&S bottom

Spot EUR/USD is attempting to break the neckline at 1.08 to form a head and shoulders bottom.

• A close through 1.08 is bullish and points up to the declining 200d at about 1.10, 1.1080 and possibly 1.1255. The 50d sma should catch up to offer support.

• A drawback to this pattern is the lack of bullish (overbought) momentum in the rally from the 1.03’s double bottom. The next rally should produce an overbought trend to increase conviction.

Leave a Reply

Your email address will not be published. Required fields are marked *

WP-Backgrounds Lite by InoPlugs Web Design and Juwelier Schönmann 1010 Wien