FX.co ★ EUR/USD Hot Forecast for 3 February, 2021

EUR/USD DAILY CHART – HEAD & SHOULDERS SUGGEST EXTENDED LOSSES COULD BE AHEAD

From a technical perspective, the US Dollar Index (DXY) – which is heavily weighted towards the Euro – appears poised to extend its recent climb from the January low (89.21), as prices breach Ascending Channel resistance and break above the neckline of an inverse Head and Shoulders reversal pattern.

A daily close above the high (91.30) would probably intensify buying pressure and carve a path for price to challenge range resistance at 92.00 .Clearing that opens the door for the index to fulfil the inverse Head and Shoulders' move.