EUR/USD Rallies from Trendline; Possible Resistance Remains 1.3750
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-The EURUSD formed a triangle pattern prior to FOMC. Comments before FOMC were “triangles sometimes form before a final ‘blow-off’. In this case, a triangle measurement is 1.3915, which is in line with the long term trendline.” The triangle played out although the ‘thrust’ was especially weak. Price didn’t even make a YTD high. The weak ‘thrust’ may signal a weak market going forward.
-An outside day reversal unfolded on Wednesday (price actually engulfs the prior 7 days).
-The rate has rallied from trendline support. Estimated resistance is now 1.3755.
Trading Strategy: Shorts at 1.3750 could work, but I’d rather be flat heading into a new year. Remember though, the Oct high may still prove significant.
LEVELS: 1.3525 1.36211.3670 | 1.3755 1.3832 1.3900