EUR/USD technical analysis: Forming inverse head-and-shoulders, breakout is still 60 pips away
- EUR/USD is creating a major bullish reversal pattern on the daily chart.
- A close above 1.1354 would confirm breakout.
EUR/USD’s daily chart shows the common currency is forming an inverse head-and-shoulders pattern with the neckline resistance, currently at 1.1354.
A daily close above 1.1354 would confirm an inverse head-and-shoulders breakout or a bearish-to-bullish trend change. So, with the spot currently trading at 1.1295, it seems safe to say that the bullish breakout is still 60 pips away.
The breakout, however, may remain elusive or could be short-lived, as markets are fully priced for a Federal Reserve rate cut in July. Also, another rate cut before the year-end seems to have been priced in.
As a result, the US dollar may recover lost ground next week, capping upside in EUR/USD.
Trend: Bullish above 1.1354
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.