Thursday, July 8, 2010
At 1.27411 EURUSD would have made two equal swings up from the lows and markets love symmetry ...
If we get a 50% retrace of the up move here we have a pretty good looking inverse head and shoulders (perhaps). It is not my favourite pattern but on some currencies like sterling it works well. If the 0.8380 high gets taken out then EURUSD is going to break out as well and the next resistance for EURGBP is 0.8425 and the 113 fib which is also close to the 50% retracement from the May high. I still like EURGBP higher and I would buy the pullback.