The EUR/USD is in the topping out process

Forexmentor.com Forex Trading Price Action

I’m of the opinion that we have a topping-out process in place on the EUR/USD pair. If you take a close look at the weekly chart for that pair – negative divergence on both forms of MACD. Add to that the fact that the Big Dogs are STILL ever so short the euro, and now they are going longer than shorter the US dollar.

So, from a position trading point-of-view, I’d be looking to be on the short side of this pair. From a day trading perspective, we had a counter-trend move happen yesterday and today, in the form of an uptrend continuation pattern, which can be clearly seen on the 15 minute chart.

On another front, I am completely out of the USD/CAD pair. I didn’t like what I saw on the weekly chart (read 1-2-3 top) and so, cashed in all my remaining chips. Don’t cry for me, though, as I originally got into this pair last September, and added to my position ever since.

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