EuroDollar Double Top (or Head & Shoulders, maybe)

Weekly chart shows Double Top, and maybe a Head & Shoulders if you don't mind the head being below the shoulders. Anyway, neck to top distance subtracted from neck puts this in the 1.4590 area, give or take depending on exactly where you pick your key levels to measure off of.

200 more pips to downside for this to complete, is the point.

Replies to This Discussion

Permalink Reply by Frederick Lambert on August 17, 2008 at 11:23pm

Downward progress has reached 1.4660s. Weekly chart fibonacci extension applied to a Bollinger Band squeeze (I use a 10 length, 1.5 deviation Bollinger Band inside a standard Bollinger Band) puts a 262% level in the 1.4360s. Coincidentally, the 89 sma is approaching the same area. I am looking for an upwards "pullback" and then more move downwards towards that area. I am not trading this Weekly Chart. I am picking my entries and exits on lower timeframes, but only in the downwards trend direction.

Attachments:

eurodollar double top on weekly #2.gif, 49 KB

Permalink Reply by Frederick Lambert on September 3, 2008 at 12:00am

After a couple weeks ranging, it appears the dollar may be strengthening...or the euro weakening...or both, because the price has broken down thru the 1.4500 level.
The attached picture of the Weekly chart includes a graphic of an applied fibonacci extension as well as the 89 sma (white asterisk line). The chart shows the price is in the range it occupied prior to the run up to the Double Top, but this range extends down to the low 1.4300s. And a break down thru the 89 sma could take it down into a previous range 700 pips lower.

Long term thinking here. But we have a solid down trend, interrupted by ranging which is also tradeable (on lower timeframes) until the next leg down.