News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/dQxyAORI9P
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/782gHedGTW https://t.co/i6fB1PIQbx
  • #Crudeoil prices could reverse lower as the #OPEC Monthly Oil Market Report (MOMR) forecasts fading global demand and oversupply concerns. Get your #commodities update from @DanielGMoss here: https://t.co/G02ajeLPqZ https://t.co/THuauT4XQ9
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here: https://t.co/kDCHxHgGlU https://t.co/Li4jHqaNdC
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2020/09/20/US-Dollar-Outlook-Bearish-on-Mnuchin-Powell-Testimonies-Key-US-Data.html
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/fuWSUDE1pT
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eRTdlhAOFN
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here: https://t.co/HFjc6KGzRw
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here: https://t.co/CPxP1Q8B6d https://t.co/n2wESiqnpJ
EUR/USD Standing Head-and-Shoulders above the Rest

EUR/USD Standing Head-and-Shoulders above the Rest

2017-10-17 14:08:00
Paul Robinson, Strategist
Share:

Check out the fundamental view on EURUSD in our Q4 Forecast.

We aren’t quite there yet, but a topping pattern – ‘Head-and-shoulders’ – is coming more and more into focus with each passing day. The beginning of the pending pattern starts back in early August with the development of a ‘left shoulder’, the ‘head’ came early September upon a failure at the 2012 low, and now we are left waiting for a ‘right shoulder’ to fully form. It may have already done-so with the turn down from 11880. To make the pattern official, though, we not only need the ‘right shoulder’ to solidify but also see a daily closing bar below the ‘neckline’.

The 'measured move' target on a clean break of the 'neckline' is derived by taking the height of the pattern and subtracting it from the ‘neckline’. This method points to a target in the mid-11200s. This would take EURUSD a good distance back into the range from 2015-2017, so it’s possible if it's to eventually trade much higher, broadly speaking, that a move lower may be truncated and not reach the end-target. But this doesn’t mean there still isn’t a good risk/reward opportunity here brewing. Swing-traders can operate off the daily chart, and for those trading shorter-term time-frames (i.e 4-hr or less), a confirmed break can be used to help shape trades by following the path of least resisistance.

See the new psychology guide - Building Confidence in Trading

EURUSD: Daily

EURUSD Daily Chart

An update will be provided should we get the confirmation we’re looking for. To follow along as price action progresses, you can join me on Wednesdays and Fridays for the “London FX & CFD Trading” webinars. For details, check out the Webinar Calendar.

Trade Parameters:

Entry: Daily close below the neckline.

Stop: Above the neckline.

Target: Measured move target = ~11250

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES