Bullish Triangle Pattern Developing on USD Index Price Chart
USD price, news and analysis:
- A symmetrical triangle pattern is developing on the USD index chart.
- Following a move higher, that often foreshadows a continuation of the upward trend.
Symmetrical triangle a boost for USD bulls
A bullish symmetrical triangle pattern appears to be developing on the USD index price chart, and after a move higher that often leads to a further advance. It can be seen on the daily chart below.
USD Index Price Chart, Daily Timeframe (January 1 – July 11, 2019)
Chart by IG (You can click on it for a larger image)
If a break higher does occur, the target would be almost two points above the price when the downward-sloping resistance line is breached. That is based on the gap between the support and resistance lines on June 25, when the recent low of 95.33 was reached. The resistance line then checked in a 97.31, a difference of 1.98.
Note, however, that a break downwards is also possible so USD bulls would be wise to place a stop just below the upward-sloping support line. In the case of a break lower, the target would be 1.98 below the price at which the breakout occurs. USD bears should therefore consider a stop just above the pattern’s resistance line.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.