Bullish and bearish setups for the EUR

EURUSD starts this week with a well known bullish reversal pattern – inverse head and shoulders formation. We are very close to breaking the horizontal neckline. Once the price will close above the blue area, we will get a proper buy signal. In addition to that, price closing there will mean a breakout of the mid-term down trendline (red).

EURNZD in the long-term looks very bearish. The price broke the long-term up trendline and is now breaking the horizontal support. In the short-term, that does not look any better. EURNZD is creating a rectangle, which is a trend continuation pattern and promotes a further drop. Our view is negative.

Oil is our third instrument and the situation here is also bad. The price is below the horizontal resistance and the 38,2% Fibo. In addition to that, we are still far from the down trendline. With all this, WTI should make new mid-term lows pretty soon.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis