Numerous bullish signals exist for EURUSD despite the downtrend in all time frames, according to Andy Dodd, Head of Technical Research at Louis Capital Markets.
Since a Piercing Pattern candle appeared on the monthly chart back in April, Dodd says there are now numerous bullish signals for EURUSD and there is now a potential Head and Shoulders reversal pattern forming on the daily chart, the neckline of which coincides with the current downtrend (see Chart).
The pattern will only be confirmed on a failure of that neckline, but Dodd says the medium-term target for the pattern is up at 1.2516 and he would be long on a break above the neckline as a result. For the time being, however, Dodd says the trend remains lower and he is happy to remain short.
See Chart of EURUSD.
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