The price moves in a triangle which can be realized as a reversal chart pattern or as a continuation one. The direction of a breakout will show us further market movement and give a new trading opportunity. For buying, it will be better to wait for the upward movement above 1.17000 resistance level. Stop orders for long trades must be placed below the local swing low and profit targets should be at 1.18500 and 1.19500 resistance levels. If the price moves lower, we have to wait for a breakout below the support line of the triangle. But this short trade won't be so interesting as the long one. We have 1.15000 support level not far from the possible entry level. It will be better to open short trades based on signals from lower time frames in order to get better risk reward ratio. And what do you think about this market? Please, share your ideas in comments.
Just posted about this Pair, Seeing this pair on the weekly shows me a possible head and shoulders, with my RSI telling to buy. After the triangle breakout from 1.7000 i will place a trade to hit the head and shoulders and watch for that big reversal back down. check out my page! any advice would help my long term strategies .
JoeZero
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First I want to say I appreciate your work dLavrov.
Second, would you consider that the June 14 to June 21 fall in the middle of your chart could be construed as an ending diagonal (wave 3 is not the shortest, wave 1 is a bit disproportionately long) which ends the whole downturn? You have to look at a smaller time frame to see it.
It will be interesting if we add a horizontal Fibonacci retracement channel from the left angles of the triangular formation with the following levels:
You may also add/subtract these ratios from 1.00 and 0.00, in order to see possible break-through scenarios.
Best regards!
LucianoSerafini
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Euro bullish!
DLavrov
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@LucianoSerafini, it could be, but for this the market has to break the donwtrend line and the previous swing high. Higher Lows and High Highs will be good confirmation of an uptrend.
Blacklodge
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I think the Euro remains bearish until they admit that inflation is becoming a problem and indicate that they will raise interest rates before their stated date of late next year. It's possible Germany will force their hand as inflation there heads towards 2.5 and then 3%.