Hello everyone how are you all doing? This is Friday evening and the weekend is coming up. I will be spending some quality time with my kids as well as a little time working and posting here on Winners Edge Trading.
The Eur/Usd had a range trading week as there has been mixed news concerning the Dollar. The currency appears to be forming a head in shoulders pattern on the 4hr chart. With the right shoulder just forming right now. This is a classic chart pattern that is an indication of a downward price move.
Lets Take a look at the Chart
4hr chart *Note click on the chart to learn about a charting system
On this chart the last resistance level is being challenged right now. So if this is a true head and shoulders pattern we should bounce off of this resistance level and shoot lower. I would put an initial target on a downward bounce to the 1.4800 support level.
The 1.5000 level has not been able to hold and that is a major level so I do not count it out by any means. Be ready to react to the market whichever way that it begins to move.
Next week the news will be playing a critical role in the movement in the Eur/Usd currency pair. Here is an article on the Earn Forex Blog that speaks about why the Eur/Usd went up today. Also check Forex Crunch for this weeks upcoming news releases.
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