EURUSD Update

The EURUSD has continued to post decent gains against the USD this past few weeks. Last week the pair broke through the neckline of an Inverted Head and Shoulders pattern. The eventual target for this is in the low 1.31s, which coincides with a cluster of Fib levels as well as some significant old Highs and Lows. However today it is running into a key significant pivotal level at 1.2722, this is the major multi-year Head & Shoulder Neckline, and the declining trendline of the entire move from the 2009 top. - This will prove to be a key pivot, and if broken could see EURUSD push up sharply. However given its significance, and this being a first approach, I would favour it to check recent gains and lead to profit taking.


If this 1.2722 level does contain today's upside then the pair could see a correction to the low 1.2620-40 area, if that fails to hold there is the possibility of a deeper correction toward 1.2500, with crucial support at 1.2480. - Beyond this I would start to question the sustainability of the Inverted Head & Shoulders pattern, with crucial support at 1.23/1.24 and a failure here risking the pattern becoming a failed Head & Shoulders pattern, with the deeply negative connotations that would imply.