Forex Videos

Thomas Light from Faraday Research joins us with his weekly trade in the forex markets with a plan to short EURUSD after a very strong finish last week.
Thomas Light: Last week's rally was equidistance of the early August rally. This indicates that the market has completed the ABCD Harmonic move. The completion form of this pattern coincides with a major resistance just below the 1.15 level. If we zoom out and take a bigger picture on the weekly chart, its clear that the EUR/USD remains in a long term downtrend. This gives us a lot of confidence when it comes to taking a short position at the resistance zone. But before we take a short position its crucially important to be patient and wait for signs of price exhaustion. By this I mean that it is a large tailed pin bar candle or a bearish engulfing pattern on a double top reversal pattern on the hourly candle chart.