"Head and shoulders" reversal pattern can send EUR/USD to the area of ​​1.15

At Monday European currency is trading under pressure, declining into the support zone 1.1720-1.1730, this is the last week's low. The main support zone is below around 1.1664-1.1700, this is the neckline of the reversal figure "head and shoulders", whose projected goal will be level 1.15. The pair tested this level (1.1664) twice and both times the market showed a strong rebound, which may indicate that the level is very strong.

Technically, the market is still in the bullish phase of the market, but it seems that the bulls are exhausted. The situation on the pair is unclear and interesting, taking into account the meeting of the ECB ahead that will lead to increased volatility. We will monitor the level of 1.1664, while the Eur / Usd pair is trading above, the potential for growth remains with the target ​​1.1856. However, if this level is taken, the implementation of the reversal pattern will be inevitable and the pair expects a significant medium-term decline.

Trade recommendations - out of the market

USD / JPY - gained above JPY112.90, the objective of the upward momentum is around JPY 114

On the last Friday, USD/JPY pair strengthened above the significant resistance JPY112.90. Today trading session opened up with gap, and the gap was not closed, which indicates a strong upward momentum. The local maximum of the previous week on USD / JPY was at the level of JPY113.57, and today's low is already at the level of JPY113.61. The victory of Prime Minister Abe, the demand for Japanese equity assets, the positive market sentiment, and the general market expectations of US dollar straight, all these factors in favor of further strengthening of USDJPY. Medium-term objective of the upward impulse is level JPY 114.

Trade recommendations - longs at level of JPY113.65-JPY113.70

Fort Financial Services