EUR/USD Weekly Signal- Aug. 26, 2013
By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 1.3400 – 1.3425
Take Profit Zone: 1.3025 – 1.3050
Stop Loss Zone: 1.3550 – 1.3575
The EURUSD currency pair has launched a five week rally which caused it to settle into a very heavy resistance zone as indicated in the chart above. Additionally it has formed an imperfect head-and-shoulders pattern which is a bearish chart formation.
While the USD is expected to remain weak, a correction should be expected in order to maintain the overall uptrend in this currency pair. The correction should form a higher low and be limited to its ascending trend-line from where the EURUSD should find support and launch a year-end rally which may see a close above 1.3750.
* We have been charting this pair since August 9, 2013 and it is still relevant for your trading.
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