USD - Good possiblity of further gains ahead.

This is very interesting – In my opinion we are seeing a good possibility of significant further gains for the USD across the board. 

Though with EURUSD at a pivotal zone, immediate direction is slightly uncertain. Holding above this level could signify a rebound, though a clear break though would be a blow and suggests to me EURUSD will head lower.  – Note: This is on weekly charts, so caution as verification may be needed, and intraday overshoots could be misleading.

See EURUSD weekly chart below.

What would be really interesting is if turns out that the move higher from the Head & Shoulder pattern of past 12 weeks have been a false/misleading breakout. – Often when that turns out to be the case, the market corrects back towards (and often hits) the head of the pattern, with a break below the right shoulder low (1.2660) usually being a key confirmation of this.

Here is an example of a similar turn of events on USD10 Year Yields in 2008-2010. (Though clearly on this example the head of the pattern was not hit, the emphasis however is on the consistency and size of the move lower).

Note: The break out of the right shoulder extreme has already occurred on the USD INDEX, though the fact that GBPUSD and USDJPY are part of these baskets would have contributed to the different dynamic there (See below)

I am not taking this as implying anything else for any other markets, currencies or indices. This is purely based on these charts. – Note however, the prior AUDUSD analysis continues to unfold……