Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: An inverse head and shoulders pattern that began exactly 8 months ago (9/14/12) was confirmed Tuesday. The target from the pattern is 1.0111. In the ‘year of the breakout’, ignore such patterns at your own risk. It’s also a good sign for bulls that price was able to close above the 61.8% retracement of the decline from .9971. Channel resistance won today but look for support at the broken upward sloping channel line and neckline (both in blue).
FOREXTrading Strategy: Long, .9520 stop, target 1.0100 – will add if price re-tests neckline near .9600 and responds.
LEVELS: .9520 .9583 .9627 .9720 .9771 .9898