The opportunity in the European session was to expect USD strength. However dollar pairs are now showing signs of being oversold/overbought. A turn or bottoming is likely during the US session.
Overall the patterns show potential for short term dollar weakness for the next few trading sessions. Where I expect to see larger dollar gains is in EUR/USD following a small recovery.
EUR/USD - Some recovery but another drop is possible
GBP/USD - Is a triangle forming? It needs to turn up soon to hold the pattern
See previous post: http://blogs.fxstreet.com/disciplined/2009/09/17/high-probability-a-triangle-is-forming-on-the-gbpusd/
USD/CAD - Break-out or break down? Let’s see if the diagonal holds.
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