Euro breaks through a negative pattern's support. - Technical Analysis - 13-01-2016
EUR/USD kept falling in the intraday levels trading, with the continuous negative pressure from the simple moving average for the last 50 hours period, breaking thereafter through the nick line of a negative pattern that formed previously in the short term, which is the Head and Shoulders patter as shown in the attached chart, and with relative power indicators reaching overbought levels, hinting at the start of forming of a negative divergence in the Stochastic indicator as shown below the attached chart.
Therefore we expect more losses for the pair, targeting the crucial support of 1.0720 as a price target for that Head and Shoulders forming pattern.
Trend
Bearish