Friday, November 13, 2009

EUR/USD - Possible Irregular H&S pattern in progress

EUR/USD Daily chart is possibly developing an Irregular Head & Shoulders pattern.
Following the lower top at 1.5044 we had a big down day along with the Key Reversal in AUD/USD, corrections from recent tops in Stocks & Commodities.

Technically the smooth Primary Uptrend Channel since June '09 is intact (black lines) and it determines the larger timeframe trading bands: Lower 1.4560 - Higher 1.5220.

On the Short term pattern that is developing inside the Primary trend channel I'm looking for a test of the Neckline around 1.4680. That level is probably to offer good sized bids but if broken it threatens the structure of the underlying Primary trend Channel.

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