This pair completed the bullish bat pattern, following it's natural bullish result at .618 fibonacci level, it then stopped at .382 accompanied by a horizontal support + bounce on the breakout line.
This pair seems to be going down after a clear stop on these resistance lines, a strong bullish breakout could occur.
Long term support line touching 1998, 2001, 2009 and now a failed attempt to break the new 2015 test looks like it's going up:
As we can see, after bouncing the long term support line, it tested twice, forming a head and now breaking above this recent year horizontal wave pattern.
In the previous attempt of breaking...
On the last days of February 2015, this pair broke down a long term trend line started on 2008. It went up and now it's time to know if it really proved to be a break-down by bouncing the resistance line or get back in game with the up-trend line.
In this chart I publish some perspectives based on different levels of support and resistance lines.
In a general note:
Bullish side: U shape testing a resistance line.
Bearish side: Goes into the same pattern but in an inferior level attempting to break the top level.
In my previous short-term idea, we can see how it broke and it went down touching a 61.8% support level + Support trend line. However, in a very long trend we see a possible change in direction. So, in the case of a break-down of the diagonal support line showed in the graph, we can confirm a break to 119.223 support line + Fibonacci extension of 38.2%, followed...
This pair is still fighting the long term resistance line. With confirmation with bullish signs, we can determine the current trend and see where it can go. If it goes down, it will try to test into what it would be a head support.
The dollar can arise from the dead and now it's gaining power, it's finally time to detect a trend and as simple as it can get, we have a very possible correction before going up and decide whether it's going to beat the strongest resistance of all.
With Oil almost touching a support level, the US Dollar Index touching a resistance, we might have two possible paths. US dollar remains bullish and would cause the continuation of the big fall of EUR/USD to a very important support line since 1985, or we follow the US Dollar Index bouncing downwards, and we take a break and EUR finally goes up.
When the very end bullish pattern broke when it hit an important Fibonacci level which was at 14.93, it began breaking a series of support trend lines, each one making a pullback and then going down.
In the last yellow trend line, it tested the the pullback trend line twice, and it still went up and this is because it has to follow the new downtrend, however,...
It is too soon for another correction to the bottom of the support line. The market just spiked and it's not common for a US index to go down like that again. Also other markets need to breath.
Probable bounce over the horizontal support line.
Chart says it all. Viewed from the same perspective as SPX500 which shows a firm trend line.
If it doesn't go up and it's not creating a fake break-down, it would be very terrible for FRA40. We would be talking about a big correction to 3300-3600 areas.