Double Top and Triangle on Intraday EUR/USD

The 60 minute EUR/USD has formed an asymmetrical triangle pattern on the 60 minute chart. This alert is a Continuation Triangle emerging pattern that is of particular note because of the horizontal resistance or double top. Asymmetrical triangles will have one side of the pattern that is more a horizontal level than a trendline. This horizontal level alone will offer two opportunities: the breakout or the exhaustion play.




The double top is soft which means the variance between the two touchpoints is greater than five pips. However with the first touchpoint at 1.4298 and he second at 1.4304 it's hardly a wide range between tops. The horizontal level is also strengthened by the 1.4300 psychological level.


With the Initial Trend lower as would be desired for a triangle pattern the underlying trend is not strong and indicates a fading trend as prices battle with the 1.4300 level. There are two options here. The first would be to play this triangle as a momentum play - waiting for prices to pierce the ceiling or uptrend line support for a breakdown. The other set up is more aggressive and is an exhaustion play off the ceiling which would be a a short set up relying on the "00" resistance. This set up would require a tight stop because if prices are able to rally past 1.4305 - 1.4310, it should be played as a breakout.

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