EURUSD PATTERN FORMATION

The euro is still holding onto recent gain against the US dollar, although bulls are struggling to move price above the 1.1200 level. The daily time frame shows that a large inverted head and shoulders pattern with over 400 points of upside potential has formed. It is possible that a correction towards either the 1.1020 or 1.0930 level may occur to form a right-hand shoulder to complete the bullish pattern.

• The EURUSD pair is only bullish while trading above the 1.1120 level, key resistance is found at the 1.1200 and 1.1260 levels.

• The EURUSD pair is bearish while trading below the 1.1120 level, key support is found at the 1.1020 and 1.0930 levels.