EUR/USD Weekly Signal- Aug. 26, 2013

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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.

EURUSD Signal

* We have been charting this pair since August 9, 2013 and it is still relevant for your trading.

Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.