Hello traders, if you guys have been following my blog you should be well aware of how much I have been following the EUR/USD against the dollar. I have been tracking the EUR/USD in my proprietary channel system and showing you guys how we have been trading inside of the channel marked inside the chart below. Every time we break past the top we sell back down, every time we sell through the bottom we trade back up. Well lately we have been having some selling pressure in the EUR/USD post this failed breakout of the inverse head and shoulders pattern we had in the EUR/USD ( Can you see it =] ). Well now we have broken the uptrend line that has been in tact since last month and I am looking for this failed breakout to bring some selling pressure. I think we will sell back down to the bottom of the channel and the dollar will trade higher. In the dollar chart below you can see how we held above the longterm downward trendline and now we are starting to get some buying pressure in the dollar. While the EUR/USD chart is holding below the moving averages now, the /DX is trying to break through the moving averages. This analysis is telling us that we can expect the dollar to start trading higher,the market to come in, and the EUR/USD to sell lower. I would watch weak commodity stocks as they may be sell targets once again. Will keep you posted !!
EUR/USD Daily
EUR/USD Weekly
/DX USD Dollar Futures
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