EUR/USD Consolidates In Front of NFP
The 30 minute EUR/USD graph is consolidating as the New York session starts and the market prepares for the release of the Non-Farm Payrolls number. This often volatile economic event is typically preceded by a quiet and range-bound market as traders wait for the result. Consequently the 15 and 30 minute charts will have triangle and rectangle patterns as data releases approach, which sets up momentum plays for the releases.
This morning the 30 minute EUR/USD has already found its way outside the range of a Continuation Triangle pattern. This complete pattern alert broke the resistance of the downtrend line (green) and Autochartist has plotted an upside forecast from 1.4343 to 1.4390. This also indicates the expected resistance at the 1.4350 and 1.4400 major psychological levels. With the low Initial Trend this is an ideal pattern for a sideways, consolidating market, however the follow-through is likely to come after the 8:30am EST NFP release. The other consideration is at which price it might accelerate. As the EUR/USD seems to still be moving sideways in a range, could there perhaps be a second level to consider?
The 30 minute EUR/USD graph also has a Continuation Falling Wedge emerging pattern alert. It's not uncommon to have multiple alerts for the same timeframe. This alert would not have been considered as a potential set up because it is a trending pattern forming in a sideways market, confirmed by the low Initial Trend reading. The pattern could still be helpful though. The downtrend line resistance (green) on this chart could be an indication of where the EUR/USD may still find a breakout, and could be the second level of confirmation needed. Remember that even patterns that are not confirmed by the underlying market cycle could still have lines and levels that are useful!
For further information, visit http://autochartist.com
This morning the 30 minute EUR/USD has already found its way outside the range of a Continuation Triangle pattern. This complete pattern alert broke the resistance of the downtrend line (green) and Autochartist has plotted an upside forecast from 1.4343 to 1.4390. This also indicates the expected resistance at the 1.4350 and 1.4400 major psychological levels. With the low Initial Trend this is an ideal pattern for a sideways, consolidating market, however the follow-through is likely to come after the 8:30am EST NFP release. The other consideration is at which price it might accelerate. As the EUR/USD seems to still be moving sideways in a range, could there perhaps be a second level to consider?
The 30 minute EUR/USD graph also has a Continuation Falling Wedge emerging pattern alert. It's not uncommon to have multiple alerts for the same timeframe. This alert would not have been considered as a potential set up because it is a trending pattern forming in a sideways market, confirmed by the low Initial Trend reading. The pattern could still be helpful though. The downtrend line resistance (green) on this chart could be an indication of where the EUR/USD may still find a breakout, and could be the second level of confirmation needed. Remember that even patterns that are not confirmed by the underlying market cycle could still have lines and levels that are useful!
For further information, visit http://autochartist.com
- 7 August |
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