EURUSD heads into tonight’s US jobs data with its chart interestingly placed
As the Daily chart above shows, yesterday’s peak was neatly at the support of the recent major triangle pattern. If the Euro starts to fall away from here, it will constitute a classic pattern “retest” where old support acts as new resistance.
4 Hour Chart
Non-Farm Payrolls are notorious for creating market volatility so caution is required. However, a typical chart strategy is to use shorter term charts to create entry strategies for a longer term setup.
In this case, the 4 hour chart is showing signs of a potential head and shoulder pattern. The slow stochastic below the chart is also making lower highs.
A move back above the right shoulder would negate the head and shoulder. However a situation where price stays below this level and then breaks clearly below the 20 day moving average might indicate lower prices to come.
About Ric Spooner
Ric Spooner is Chief Market Analyst at CMC Markets in Sydney. He has over 30 years experience in derivates markets, and was previously a Managing Director at Sydney Futures Exchange Clearing, General Manager at JBWere Futures and Manager at Elders Futures.