The US released an excellent jobs report for July: 255K jobs gained, 0.3% up in wages and no hidden caveats. The US dollar strengthened across the board.
For EUR/USD that has been very frustrating so many times (including this week) is certainly reacting. And the reaction also involves a Head & Shoulders pattern. The pair dropped under support and looks to lean lower.
The tilted head and shoulders pattern converges with support at 1.1111 (or 0.90 on USD/EUR) and the pair is now heading to lower support. The next line to watch is 1.1050, which capped the pair in the past.
The next line to be watched is the obvious 1.10, and this is followed by 1.0960, which cushioned the pair several times in recent weeks. On the topside, 1.1111 switches roles into resistance, with the initial post-Brexit level of 1.1190 following up.
More: Updated Elliott Wave Analysis for EUR/USD.
Here is how it looks in the chart:
Share
