The EUR/USD has confirmed a complex inverse head & shoulders pattern with Thursday's clearance of neckline resistance. A weekly close above the 10-week MA at 1.2455 will invoke further strength towards 1.2670 (May 21st high) ahead of a move towards the inverse head & shoulder's target near the 1.30 handle. Meanwhile, the US Dollar Index rejected at a 10-day bear trendline, resulting in the loss of 50-day MA & platform (85.17 pivot) support. The DXY now seems poised to head lower towards it's 100-day MA. If, however, the 85.17 pivot is sustainably broken to the upside and the EUR/USD relapses back below the aforementioned neckline at 1.2360, then focus shifts back to the DXY's bear trendline and the EUR/USD's trendline support in the 1.2227 region.
