Intraday EUR/USD Squeezing Into Trading Range
A Continuation Triangle chart pattern has formed in the 30 minute EUR/USD chart. The current trend direction is down. The Initial Trend reading (C) is high. This indicates that there is still momentum heading lower. The triangle chart pattern may not be a well-suited chart pattern for this trend. However, there are some important touch points to note which makes this chart pattern alert important to keep an eye on.
The two support touch points which make the horizontal level of the triangle are at (A) 1.4585 and (B) 1.4582. As there are less than 5 pips variance between the lows this support level is solid. It will be a strong near-term floor even with the strong downtrend.
Should prices find enough buying support and momentum, keep an eye on the downtrend resistance line (D) of the chart pattern for a potential breakout and reversal of the trend. Keep in mind though that the Initial Trend reading is high. An entry that would be more of a trend follow of this downtrend resistance line (D) would be a short off this line as prices approach 1.4615.
For further information on this and other chart patterns visit www.autochartist.com
The two support touch points which make the horizontal level of the triangle are at (A) 1.4585 and (B) 1.4582. As there are less than 5 pips variance between the lows this support level is solid. It will be a strong near-term floor even with the strong downtrend.
Should prices find enough buying support and momentum, keep an eye on the downtrend resistance line (D) of the chart pattern for a potential breakout and reversal of the trend. Keep in mind though that the Initial Trend reading is high. An entry that would be more of a trend follow of this downtrend resistance line (D) would be a short off this line as prices approach 1.4615.
For further information on this and other chart patterns visit www.autochartist.com
- 29 September |
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