The European Dollar spiked on Friday, post stable European Central Bank stance mid-week and the U.S. Non Farm Payroll numbers that increased by 235 thousand in February of 2017, lower than upwardly revised 238 thousand in January but above market expectations of 190 thousand. EURUSD currency pair ended the week in green. While lot of fundamental events are awaited in the coming week, most importantly FED March rate decision (we will try to detail the DOT plot in a separate article), lets look into technical analysis for EURUSD.
The daily chart for EURUSD currency pair, forms an ideal case study of an inverse Head and Shoulder pattern with right shoulder currently in formation. The currency pair could take itself up until neckline at around 1.08 level in coming days so as to neatly complete right shoulder, and then pick up an upward or else downward direction. Some resistance is seen at sub 1.07 levels though, coming from long term resistance slope line, drawn from last August. Based on fundamentals (data releases, political events etc) in the Eurozone and the USD strength, Euro could garner strength and break-out from this above or else succumb to resistance and move south. The arrows outline some possible moves for the pair.
Intra-day and weekly trade strategies can be devised accordingly while keeping a close eye on various critical impacting factors.