Pressure from the dollar on the euro continues - with EURUSD falling to a yearly low of 1.1500 at the end of last week. At the moment, the pair is trading at 1.1392.

According to the chart, it appears as though an inverse head and shoulders is forming on the daily timeframe (D1):

(Click on image to enlarge)

The image shows that currently, EURUSD is making its first attempt at a breakthrough of the neckline. I first mentioned this almost two months ago in my online currency market reviews.

I want to note that the current head and shoulders pattern which has formed on the chart appears quite promising. First, the left shoulder is significantly higher than the right shoulder. Secondly, the neckline is not horizontal, it goes down. Therefore, it seems to me that in the coming months the probability that we will see significantly lower levels on the EURUSD pair is quite large. I'll be sure to write about it should my forecast change.