Potential head and shoulders pattern with price projection for the EUR/USD

Forexmentor.com Forex Trading Price Action

Jason David did a projection from what he calculated to be the neckline of a potential head and shoulders pattern on the daily chart for the EUR/USD pair and, if he got it right, then the end product is 1.3676. That puts it within 10 pips of the all-time high of the euro; seems reasonable technically, at least, according to him.

Today’s price action would seem to indicate that Jason is on the right track with his prediction. The greenback is having signs of weakening a bit more in the next year, and the euro is acting headstrong, in his estimation. At www.forexmentor.com our members submit information like this on a regular basis.

Happy Easter everybody!

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Expecting further price weakness on the USD/CAD pair

Forexmentor.com Forex Trading Price Action

Yesterday, I talked about how the USD/CAD pair was in a state of decline, as represented on all chart levels – except the 15 minute, where price was consolidating. If you take a look at the most recent 1 hour chart, you will notice that price is being contained by the 200 EMA, which is still trending down. Accordingly, I would expect further price weakness in this pair.

The 200 EMA was voted years ago as the best trading indicator out of the 99 available to traders. It is a good reflector of price trend and predictor of future price direction. For more on how to use indicators correctly, please stay tuned to www.forexmentor.com.

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Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

The USD/CAD pair is in a decline, if you believe in Top-Down Analysis. MACD is heading south on the weekly and daily charts – below its trigger line, in both cases. And, the 200 EMA is trending down on the 4 hour and 1 hour charts. Price is consolidating on the 15 minute. Translation: expect further weakness in this pair.

You may recall that I liquidated my positions in this pair recently, and that was a good thing. Right now, I’m sitting on the sidelines, waiting for a good set-up in some other pair. I feel I have milked this one for all its worth and I’m not greedy. It’s time to take a rest, and look for that next opportunity. Position trades don’t come around all that often, but they are well worth the wait. To that end, you will find information on that type of trading in the members’ area at www.forexmentor.com.

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