Hey traders,

today after some bullish news for the dollar euro had a huge down day and completed what looks like a 3 week head and shoulders pattern with ultimate target of 1.3226

Head and shoulders is always good pattern to look at to guage targets, but hard to trade based upon.

First key support level for EC dollar futures is at 50ema (red line on daily chart):

With 1.36 fib confluence support right below. With bottom of the channel and and 1.34 fib confluence and backtest of 200dma expected to be other support levels shall dollar continue to show strength.

Interesting short set up is at 1.3951 with 200 hour ema, 50% retracement from last weeks high and previous s/r level ligning up in same area.

Be sure to check Weekly FX Moving Economic Events for currency moving events

Good luck and good trading

Vlad