US Dollar Complex Head-and-Shoulders with Double Chin
A lot of people are betting that the EUR/USD pair follow through with a 1.40+ target price. I do believe these traders will be correct, but it looks like we have one more bump in the road before the dollar fetches a 73.00 handle / EUR/USD 1.40+.
So I put a chart together to describe the possibility of what is going to happen in the next several months. What I found was a complex head and shoulders pattern.
US Dollar
Complex Head-and-Shoulders
Characteristic
Price trend: Upward leading to the pattern.
Shape: A head-and-shoulders top with multiple shoulders or multiple heads, but rarely both.
Symmetry: The shoulders should peak near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow peaks) compared to their mirror opposite.
Volume: Usually higher on the left side of the pattern.
Neckline: Joins the lowest armpits and is often nearly horizontal. Rarely does it slope steeply.
Confirmation: The pattern confirms as valid when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.
Measure Rule: Compute the height from the highest head (A) to the neckline directly below (B) and then subtract it from the breakout price (C).
thepatternsite.com/chst.html
I also added the double chin feature. The double chins are support lines drawn from the smaller shoulders. You might also want to take note of the strong confluence around the .5 fib line at 78.39, which is also where the neckline/double chins developed. Very possible we do a touch and go on the foremost neckline before the dollar attempts to break the 82.00 strong resistance level.
So I put a chart together to describe the possibility of what is going to happen in the next several months. What I found was a complex head and shoulders pattern.
US Dollar
Complex Head-and-Shoulders
Characteristic
Price trend: Upward leading to the pattern.
Shape: A head-and-shoulders top with multiple shoulders or multiple heads, but rarely both.
Symmetry: The shoulders should peak near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow peaks) compared to their mirror opposite.
Volume: Usually higher on the left side of the pattern.
Neckline: Joins the lowest armpits and is often nearly horizontal. Rarely does it slope steeply.
Confirmation: The pattern confirms as valid when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.
Measure Rule: Compute the height from the highest head (A) to the neckline directly below (B) and then subtract it from the breakout price (C).
thepatternsite.com/chst.html
I also added the double chin feature. The double chins are support lines drawn from the smaller shoulders. You might also want to take note of the strong confluence around the .5 fib line at 78.39, which is also where the neckline/double chins developed. Very possible we do a touch and go on the foremost neckline before the dollar attempts to break the 82.00 strong resistance level.
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