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The euro is the hot item in the forex market on Black Friday

EUR/USD rises above Oct high

The euro has taken advantage of what was supposed to be a quiet week to rally to a two month high. It's the fourth day of gains on a combination of US dollar weakness and good news from Europe.

The rise above the October high invalidates the right shoulder of the well-defined head-and-shoulders pattern on the EUR/USD chart.

In the bigger picture, the US dollar is looking increasingly vulnerable. The week ahead and the lead-up to the FOMC meeting in December will be very interesting. It could be a rough finish to a nightmare year for the US dollar bulls.

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