Expect volume and any meaningful trend to be scarce as two of the three major market centers are still away on vacation. EUR/USD, however, is waiting for the players to return to determine the fate of this descending triangle, as well as the 2-month uptrend channel. I hate to say it, but it's either up or down from here. What I can give you are the pattern boundary prices that will determine if the triangle is successful or not. If the triangle holds, then 1.2820 will be your confirming price.  If the triangle fails, it will be at 1.2700, which is unbelievably a quintuple bottom. If the market gives up 1.2700, watch out below.

Wait for break of either boundary price, followed by a retracement to enter the market with the necessary stops.

EUR/JPY's current Head and Shoulder pattern is looking to push price through shoulder line 142.75, which would help push EUR/USD lower through channel support. Watch for a break below 143.00 down to 142.75, followed by a retest of the neckline at 143.00 to get short with stops 50 points higher. The final target is way downtown, so position size accordingly to allow for the slightly bigger stop.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.