CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

EUR/USD technical analysis: Forming inverse head-and-shoulders, breakout is still 60 pips away

2019-06-21 09:45

  • 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



It is worth noting that even if the Fed cuts rates three times this year, the US dollar would still retain its position a high-yielding major currency. 



Daily chart





Trend: Bullish above 1.1354



Pivot levels





 


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.

Economic news

    Exchange Rates

    GBPUSD +1.58% 1.31442
    EURUSD +0.41% 1.18688
    XAUUSD +0.65% 1922.45
    XTIUSD -2.72% 40.229
    NAS100 -0.40% 11656.5
    US30 -0.41% 28223.3