Eur/Usd: Head and Shoulders Pattern

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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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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