Sometime ago my analysis for the EUR/USD pair had turned out completely wrong. That made me take a closer look at it, since this is the most traded pair on the Forex market.
What is the technical analysis picture of it today?
On the screenshot of the weekly time frame you can see a flag so well-formed that it could called an almost textbook example of one and the support trendline of that flag has been broken at 1.1148. After that the pair moved to the downside, then retraced to test the broken trendline.
The height of the flag, i.e. the distance between the first low and the first high of the flag, is 823 pips. That means that in the case of a breakout we need to project these 823 pips to the downside – i.e. in the direction of the breakout – which means that the flag’s limit is at 1.0309.
Of course, we should keep in mind that this pattern is forming on the weekly time frame, so it will take quite a long time for the pair to reach that level.
Interesting info!
ReplyDeleteVery helpful post, thanks.
ReplyDeleteGood insight.
ReplyDeleteImmediate support level can be found at 1.1000 level.
ReplyDeleteGreat post.
ReplyDeleteGood article!
ReplyDelete