XEU Euro Daily Chart Head and Shoulder Patterns

The euro is printing 1.3005 as this is typed. The red H&S is head at 1.363, neckline at 1.332, which ruptured, so target is 1.301, achieved this morning. The indicators are positively diverged so a bounce is needed. The MACD remains weak and bleak, however, so it will want to see a lower low in price after a bounce, then, that should help the euro settle in sideways for a few days. The weekly chart is leaning towards some additional downside in the weeks ahead but overall, a sideways pattern for the euro and dollar currencies is likely the path forward. Perhaps a move through 1.27-1.33 as the global drama plays out in the weeks ahead. The blue H&S with head at 1.36, neckline at 1.305, would target the support at 1.25. Euro down = dollar up = equities down.  Euro up = dollar down = equities up. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 3/1/13 at 8:23 AM:  The euro failed the 1.30 level now printing 1.2997.