USD/CAD is the one that helped me come to this analyzation and the monthly chart on the EUR/USD .
As you can see USD/CAD has been at an uptrend since 2013 and finally broke support around 1.23410 level after 11 weeks of consolidation on the weekly chart.
I also predicted this drop with USD/CAD a few months ago on TradingView.com/u/PipsUniversity
Now with USD/CAD it looks like it is going to drop to atleast 1.17180 around 500'ish pips, now when USD/CAD drops EUR/USD goes up.
They are extremely negatively correlated, now if you look at the EUR/USD monthly chart you can see we have two candles that are indecisive after 12 months of movement.
We have extreme oversold conditions right now and the weekly is showing signs of momentum based off the last weeks candle and then we have true resistance at around 1.10500'ish level.
We have major divergence on and it looks ready for a massive move to the upside.
This is why understanding currency correlations is so important, you can predict 2 extreme moves by looking at only 1 pair.
That's what I love, knowing how to make money without even looking at the chart.
When it breaks this resistance it will most likely pull up to the 1.18260 level for around 700-800 pips.
There is no clear entry on it yet for a heavy position however the 2hr chart is forming a nice uptrend, but still there is no trade open yet.
I have waited for this movement for a while as you all know so I'm excited to see what happens.
Once this happens it will be easy money for a few months, buying EUR/USD & selling USD/CAD
Have a great rest of the week and remember the trend is your FRIEND :)