• The pair is trapped in a tight, 100 pips range for almost 2 weeks now
• We are in a consolidation mode, so breakout should be expected in the next few days
• As seen on the hourly chart, an ascending triangle has been formed
• An ascending triangle is a bullish pattern, a breakout to the upside is usually expected
• Given the fact that too much negativity is already priced in the Euro, any less negative news or bonds correction in the US might lead to that breakout
Trading recommendation:
• A clear break above the resistance of the triangle, around 1.06 is a buy signal
• Conservative traders should wait for a confirmation, which would be one or two daily closes above the mentioned level
• Aggressive traders can enter the trade right after the breakout
• A logical stop loss would be just below the resistance level
• A measured projection of the triangle range (around 100pips) will lead the bulls to the first target of 1.07 followed by 1.0760 previous support now turned resistance
• We are in a consolidation mode, so breakout should be expected in the next few days
• As seen on the hourly chart, an ascending triangle has been formed
• An ascending triangle is a bullish pattern, a breakout to the upside is usually expected
• Given the fact that too much negativity is already priced in the Euro, any less negative news or bonds correction in the US might lead to that breakout
Trading recommendation:
• A clear break above the resistance of the triangle, around 1.06 is a buy signal
• Conservative traders should wait for a confirmation, which would be one or two daily closes above the mentioned level
• Aggressive traders can enter the trade right after the breakout
• A logical stop loss would be just below the resistance level
• A measured projection of the triangle range (around 100pips) will lead the bulls to the first target of 1.07 followed by 1.0760 previous support now turned resistance
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.