23 Dec 2015
EUR/USD: watch H&S formation - Scotiabank
FXStreet (Guatemala) - Analysts at Scotiabank explained that the EUR/USD short‐term technicals are (neutral/bearish).
Key Quotes:
"EUR/USD gains through the week so far have conformed more or less to technical expectations. We noted earlier in the week that EURUSD price may be constructing at bearish Head & Shoulders formation which, if our assessment was correct, would mean that gains were liable to stall above 1.09.
The steady drift back from the upper 1.09s since yesterday’s peak does look to have the early makings of the right hand shoulder we were looking for. The breakdown trigger remains distant at 1.0807 but weakness back below here in the next week or so should mean an early January revisit to the 1.0500/50 area. We spot strong resistance at 1.0975/00 now. "
Key Quotes:
"EUR/USD gains through the week so far have conformed more or less to technical expectations. We noted earlier in the week that EURUSD price may be constructing at bearish Head & Shoulders formation which, if our assessment was correct, would mean that gains were liable to stall above 1.09.
The steady drift back from the upper 1.09s since yesterday’s peak does look to have the early makings of the right hand shoulder we were looking for. The breakdown trigger remains distant at 1.0807 but weakness back below here in the next week or so should mean an early January revisit to the 1.0500/50 area. We spot strong resistance at 1.0975/00 now. "