Is the EUR/USD Pair Reversal Head and Shoulder Pattern a Strong Signal?

The EUR/USD pair is slightly higher even though the IMF released a report forecasting global grow except for euro area. The IMF downgraded its near-term forecast for the euro area. The region could now expected to contract slightly in 2013. According to the IMF, global growth will strengthen gradually this year.

Is the EUR/USD Pair Reversal Head and Shoulder Pattern a Strong Signal?

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The EUR/USD which is in a possible small and weak reverse head and shoulder pattern, should had been affected by the announcement. The fact that it has hold steady in its resistance level, is a good sign for the bullish Forex trader. Technical indicators are still signalling a strong buy overall.

 

 

 

 

 

Investor and traders should be concern about the daily ADX technical indicator which is one of two indicator signalling caution. It could also mean that the pair is strengthening in that position looking for further grow.

If the EUR/USD pair break above 1.3480, investor could take a break and until the 1.3650 where more resistance might be encountered.

The economic calendar would help traders access the risk ahead for the currency pair. With economic announcement expected to influence it. Such as the US jobless claim tomorrow, Euro Zone consumer confidence today along with England Claimant Count Change, which could  affect the GBP/EUR pair and help the Euro currency as a whole.

In both instance, a higher than expected reading should be taken as bearish signal for the local currency, and as a bullish signal for the Euro currency.

 

 

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