EURODOLLAR VS US DOLLAR (EUR/USD)
I’m STILL waiting for the EUR/USD currency pair to work out a textbook head and shoulders reversal pattern on its weekly chart.
Slowness seems to be a theme as the markets deal with uncertainty from many economic fronts.
Another “tail” on the weekly chart formed this week, and that should bring selling into the market. If the week to come doesn’t produce a clear and significant downward move, then I would take that as a signal to scratch the trade and move on.
If you have been following these forecasts for a while, you will see and feel the cycles as capital is deployed and then profits and losses are locked as risk is taken off. This cycle flows with the odds for directional movement…
So, when you see a few weeks of quiet action, and fewer and fewer open positions, you know it’s time to be cautious in the markets.