EURUSD Can you see the Weekly Head And Shoulders take a Peak

Exchange rate of NY time at the end of last week, the dollar yen achieved put 103 yen since October 2008.Important economic indicators such as employment and U.S. housing falls below the market expectations across the board, I met with just when concern had spread to the U.S. economy, U.S. May University of Michigan consumer confidence, which was announced at the end of last week is much higher than expected that it has become a good result is seen as a surprise, it was the boost the dollar yen.

Weekly Head and shoulders 

Daily  Breach of 161.8 fib Heavily over sold Could we see a bounce or will be continue to Free Fall

4hr Time Fame can see a Bullish Crab and Bullish wedge  Patter a Break out may indicate a push to the weelky Pivot @ 1.2884 Sniper Zone  a break of this will get the bulls under way for 1.2973 /1.2998 Weekly 50% line

EUR/USD suffered a second week of significant falls after euro-zone figures disappointed and the dollar kept advancing. Is the pair ready to recover or are we going to see more drops? Flash PMI’s and German Ifo Business Climate are the highlights of this week. Here is an outlook for the main events and an updated technical analysis for EUR/USD.

Eurozone economic data was hit by a constant flow of disappointing GDP numbers, dragging the 17-country currency bloc to its longest-ever recession. Germany the leading force in Europe failed to meet market expectations, growing a mere 0.1% in March. France contracted 0.2% in March and officially fell back to recession. The EU as a whole declined by 0.2%. Is the recovery awaiting us in H2 as the ECB estimates? In the meantime, the central bank continues to check out the possibility of a negative deposit rate, and this weighs on the euro. In the US,data hasn’t been all rosy, but the economy continues growing.

EUR/USD daily graph with support and resistance lines on it. Click to enlarge:

1. German PPI: Tuesday, 6:00. Manufacturers’ products inflation in Germany declined in March 0.2% on a monthly bases, following a 0.1% drop in February, driven by falling energy prices. Analysts expected a 0.1% climb. On a yearly basis, PPI gained 0.4% in March. A smaller drop of 0.1% is forecast. Lower inflation (now confirmed for the euro-zone) was one of the triggers for the rate cut.
2. EU Economic Summit: Wednesday. European Union leaders will gather in Brussels under Irish presidency and discuss pressing budget and foreign policy issues of early 2013 and on to other challenges in the “European Council Priorities up to 2014.
3. Current Account: Wednesday, 8:00.  The euro zone’s current account surplus grew in February to EUR16.3 billion from EUR13.8 billion the previous month due to increased trade. January’s current account surplus was revised down to EUR13.8 billion from an initial estimate of EUR14.8 billion published in the previous month. A decline to EUR14.2 billion is expected now.
4. Flash Manufacturing and services PMIs: Thursday: France begins at 7:00, Germany is next at 7:30 and figures for the euro-zone are released at 8:00. A sharp decline was registered in German business activity in April, down to 47.9 from 49 in March, while economists expected a reading of 49.0. Another decline occurred in Germany’s service sector, falling to 49.2 in April from 50.9 in the previous month raising concerns that the strongest EU nation is affected by the general slowdown. Meanwhile French figures were more optimistic. The manufacturing sector increased 0.4 points to 44.4, above predictions for a 44.2 reading and the service sector edged up to 44.1 from 41.3 in March, raising hopes of an emerging recovery process. Furthermore, Markit’s flash euro zone services PMI, rose to 46.6 in April from 46.4 in March, but the manufacturing sector declined slightly to 46.5 from 46.8 in March, still below the 50 point line, however, signaling that the worst is over. French Manufacturing PMI is expected to improve to 44.8 and the Service sector to climb to 11.7; German Manufacturing PMI is expected to reach 47.9 while the service sector is expected to cross the 50p point line reaching 50.2. Finally the Eurozone is also expected to improve with the manufacturing sector reaching 47.1 and the services sector reaching 47.4.
5. Consumer Confidence: Thursday, 14:00. Consumer sentiment in the euro zone improved in April, rising to -22.3 from -23.5 in March. The reading was higher than the -23.85 estimated by analysts. The same reading is predicted now.
6. GfK German Consumer Climate: Friday, 6:00.  German consumers were more optimistic in May amid a strong jobs market and high expectations of salary rises. The reading was 0.2% higher than in April, beating market forecast of a 5.9 reading. However, consumers did turn more pessimistic about the general economic outlook after three months of improvements, in line with recent news from retailers. No change is forecast this time.
7. German Ifo Business Climate: Friday, 8:00. German business sentiment declined to 104.4 in April, down from 106.7 in March, down for the second consecutive month. The reading was well below the 106.4 estimated by analysts. German economy resisted the Eurozone crisis but was eventually dragged down by the lasting recession. The sharp drop may ruin changes of a substantial recovery this year. A rise to 104.6 is expected now.
8. Belgium NBB Business Climate: Friday, 13:00. Belgian business confidence remained nearly unchanged in April improving by a mere 0.3 points to -14.7. Analysts expected a stronger reading of 14.3 points. A further rise to -13.4 is expected this time.