This Great Graphic was created on Bloomberg. It is the euro against the Australian dollar. There appears to be a textbook illustration of a head and shoulders pattern. The euro closed below the neckline yesterday at A$1.50 and has seen some follow through action today.
From the head to the neckline is about 8 Aussie cents. That suggests a measuring objective near A$1.42. However, the next immediate target is A$1.4730, a retracement objective of the Nov-Jan euro rally. It is not uncommon for the market to retest the neckline after violating it, but this looks to be a clean break.
Great Graphic: Picture Perfect Head and Shoulders
Reviewed by Marc Chandler
on
March 27, 2014
Rating:
Reviewed by Marc Chandler
on
March 27, 2014
Rating:
