EUR/USD Breaks Lower Through Intraday Uptrend Support

The break higher in the EUR/USD has carried the pair to 1.4250 where psychological level resistance at the “50” pip has pushed price lower and broken the uptrend line support of the Rising Wedge pattern. This pattern is a trending pattern that should ideally form within the context of an uptrend and has three possible entry scenarios, two trend-following and one trend reversal.

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EUR/USD 60-minute chart with the IBFX-PRS and GRaB plug-in for MT4

Prices can either break higher through the resistance of the pattern triggering a momentum breakout relying on prices accelerating the uptrend or correct lower to the pattern’s support trigger a swing entry relying on price resuming the uptrend. The latter entry does not necessarily require a new higher high to see follow-through while the momentum entry does.

With the 60-minute time frame triggering an intraday trend reversal, look for prices to establish support after a move lower and likely resume higher: This expectation comes from the daily chart’s bullish Directional Bias which reflects the uptrend still in place on the EUR/USD.

  • safaria2

    “This expectation comes from the daily chart’s bullish Directional Bias which reflects the uptrend still in place on the EUR/USD.”, The daily candles show that the long term trend is still bearish. The recent small uptrend in the daily candles still has not broken the long term trend line started in July 2008.

  • safaria2

    “This expectation comes from the daily chart’s bullish Directional Bias which reflects the uptrend still in place on the EUR/USD.”, The daily candles show that the long term trend is still bearish. The recent small uptrend in the daily candles still has not broken the long term trend line started in July 2008.