EUR/USD Weekly Technical Forecast: Euro’s Trend & Chart Pattern May be at Odds

EUR/USD Technical Highlights:

  • Broader trend is down, but…
  • Short-term price pattern could be bullish
  • Outlook stuck in limbo, should sort itself out soon

For the intermediate-term fundamental and technical view, check out the DailyFX Q4 Euro Forecast.

EUR/USD broader downtrend versus short-term price pattern

Overall, since topping early in the year, the trend in the Euro has clearly been down, and while this looks set to continue, there will be, as we’ve seen on several occasions, countertrend rallies. It’s only in the developmental stage so far, but an inverse ‘head-and-shoulders’ could be in the works with a little more time and continue the bounce off the Nov 12 low.

The right shoulder will need to develop in the days ahead, followed by a push higher beyond the neckline and recent price resistance in the vicinity of 11450/500. While this could indeed be the course of events to follow, an extension out of the pattern, though, could be truncated by trend-line resistance from April and several swing lows from May to September.

A rally to that point could offer another good risk/reward spot for traders to look for a key swing-high to develop,

Article source: