Market Condition: Breakout
Since August 5, 2015, prices have conformed nicely to an upward sloping trend channel. It appears we are nearing the end of a shorter term Elliott Wave sequence. Additionally, August seasonality for the EUR suggests EUR underperformance on average. If so, then prices would break below the support line of the support channel.
We’ll use a break of the support line to enter the trade with a stop loss placed just above the recent swing high. Based on current prices, that would place a break out near .7120.
First target = .7040
Second target = .6970
(Click on the chart to zoom in; after zooming in, press the play button towards the right to set the market in motion)
Created using TradingView Charts
