EUR/USD Triangle Thrust and Reversal Trade Opportunity
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-I wrote Tuesday that “EURUSD action in recent days may compose a triangle pattern. Triangles sometimes form before a final ‘blow-off’. In this case, a triangle measurement is 1.3915 (if price holds above 1.3708), which is in line with the long term trendline (see next sentence).” The triangle played out although the ‘thrust’ was especially weak. Price didn’t even break to a YTD high. Perhaps the weak ‘thrust’ suggests an especially vulnerable market.
-An outside day reversal unfolded (price actually engulfs the prior 7 days).
-Recent support is now resistance from 1.3720 to about 1.3755.
Trading Strategy: Order to short 1.3720, stop 1.3815, target 1.3420
LEVELS: 1.3525 1.36211.3660 | 1.3757 1.3830 1.3915
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.