EURODOLLAR VS US DOLLAR (EUR/USD)
I brought the EUR/USD currency pair back into these forecasts last week because I could see a reversal starting to take shape. The supply was overwhelming demand, and as forecast last week, this market produced a false breakout on Thursday which was the “multi wave topping pattern” I spoke of in my last forecast.
Closing out the week with as much weakness as we saw confirms the weekly head and shoulders pattern and I would expect that prices would begin pushing lower next week.
This offers a nice chance for some short exposure with a multi-month time horizon. This short is considered attractive anywhere within the red zone, and should produce at minimum a retest of the lows near 1.1700.