EUR/USD

Many people must have seen the latest H&S chart pattern on the EUR/USD. If you haven’t seen it above is the price chart of the EUR/USD with its 200 day simple moving average. H&S patterns do fail. Reversal above the right shoulder (1.33 level) would result in a failed H&S pattern. If there is no failure then there will be a confirmation of the H&S pattern by a breakout above or below the neckline; in this case 1.2750. It is clear that there is weakness in the euro. Or in other words strength in U.S. dollar against major currencies. Weakness in EUR can continue in the following days. Breakdown below 1.2750 will confirm the head and shoulder chart pattern and will set a price target of 1.20 levels. If EUR/USD reverses from these levels and breaches 1.33 on the upside, then the target in the following weeks becomes 1.37.