Eurodollar - Diamond Breakout to 1.42-45

FX:EURUSD   Euro Fx/U.S. Dollar
483 2 4
The Eurodollar week chart above, shows what I hold to be the current market price pattern. It’s a diagonal. From an orthodox TA point of view, diagonals should break downwards. Price however has continually bounced at confluence points of the two primary forks shown. This is important because it means that the current price action is being contained into Wave-II, and shall not extend into a higher degree bear .

Should the current diagonal be about to break downwards, we should be seeing topping action on momentum, such as that eclipsed beneath the OB             line of the Cci . Currently momentum is running > OB             level on the weekly frame. More important , I expect the current correction to be a flat in alternation with the past zigzag shown on the chart. If that proves a correct assumption, this flat is currently completing, and price will be breaking upwards from the diagonal in an intermediate term up trend.

I will therefore buy each week lower pivot levels to 1.4200 targets initially.

Fundamentally, I recall congress will be looking into raising the debt ceiling coming Feb.

Profitable Trades.
goes down !
So it goes down it appears to give the market time for short orders to accumulate, in order to feed on their stops in a speeding rally upwards. After today's action, I don't think you could still have doubts that this diagonal will ultimately break upwards. I learnt a hard earned lesson today. The bear flag showing on the shorter term hourly chart, was such a guilable and foolish trick to fall for, because it was a short term pattern. It really is key to trade reliable patterns, and these can only be long term ones.
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