A technical analysis note via Bank of America / Merrill Lynch on the euro against the US dollar
Commentary on the weekly chart.
- The downtrend in EUR/USD since the head and shoulders top pattern formed in 2018 remains the path of least resistance.
- So too does the bearish channel and resistance lines that have guided it lower.
- While price remains within this bearish channel we think the bottom of the channel and/or gap from the April 2017 French Election can be tested/filled. It is also possible the full head and shoulders target of 1.0596 is reached
More:
- A rally a weekly close through resistances at about 1.12 would be viewed as a trend changing technical break out for a rally to the 200wk SMA at 1.1358 and 1.1520 (38.2% retracement of 2018s decline)