The Euro may have formed a “Bearish Head & Shoulders” pattern.
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Over the past 9-months the neckline has had a hard time holding as support at (1) in the chart above. At the same time the US$(NYSEARCA:UUP) is working on breaking a resistance line that has held the US$ in check for the past 8-years.
If the Power of the Pattern read is correct in the Euro (NYSEARCA:FXE) and the neckline fails to hold as support, the Euro could quickly fall 5% in value, to the next support level around $1.20.