The currency traded inside a for 286 days, before breaking to the upside on March 3rd. After this breakout it failed to breach the of the swing low that started at November 13th last year and started trading inside a new, this time much narrower . Zooming out a bit reveals price actually entered a period of consolidation represented by a with the horizontal support at the 210 handle. This level coincides with the daily support I plotted in the 4H chart. Price is nearing the apex, which means a break out is due. Descending triangles at the back of a downtrend have the tendency to break to the downside, but I like to see evidence of price action before coming to a conclusion so I take both possibilities into account.
All in all I do not see an imminent trade, but with a break out of the triangle there would be two possibilities:
- With a break below and close below the there is a short opportunity. For a target I would look to the low of January 13th near the 150 handle
- With a break above and close above the upper of the triangle there is a long opportunity. For the target I would extend the height of the range within the triangle in the direction of the breakout which would have confluence with the prior mentioned level at the 301 handle
that seems to be the case... there's been very significant news in regards to MtGox liquidation so that might have dampened the mood.