EUR/USD Near Term Triangle Still Valid but Leash is Tight
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Bigger picture, a EURUSD head and shoulders would be confirmed on a drop below 1.2743. A drop below 1.2796 could also complete 5 waves down from 1.3242 and give way to a corrective rally in June. A level to keep in mind for a possible low in the next few days is the 61.8% extension of waves 1 through 3 at 1.2717. Of course, if price were to fall that low and reverse, many would probably be caught shorting a head and shoulders break. One way to protect yourself from shorting a false break…wait for the daily close before passing judgment on the validity of the break. Near term, pattern since the 5/17 low may compose a triangle (4th wave). Such an interpretation is valid as long as price is below 1.2997. The implications are for a drop to a new low.
FOREX Trading Strategy: Flat
LEVELS: 1.2744 1.2833 1.2878 1.2997 1.30321.3071
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