Yo! If any y’all breakout chartists are looking for setups to play on the euro, then check out what I’ve got for EUR/USD and EUR/JPY in today’s intraday charts update.
As y’all can see, EUR/USD has recently been trading sideways while slowly tapering into a point. In the process, a fresh symmetrical-ish triangle has formed for us to play with, although it also looks kinda like a bullish pennant on the higher time frames, except that its staff is invisible because of that there gap.
Getting back on topic, a symmetrical-ish triangle could break in either direction, so we don’t really have any directional bias. However, our technical indicators currently seem to support an upside breakout since stochastic is already indicating oversold conditions and all that. Meanwhile, them moving averages are in uptrend mode, withe the 100 SMA seemingly acting as dynamic support.
Anyhow, just make sure the pair clears 1.0950 on clear momentum before chillaxing. And remember that a downside breakout is always possible when it comes to symmetrical triangles. A downside breakout needs to smash past 1.0870 and then 1.0820 before being confirmed, though. Otherwise, chances are good that the breakout may end up a fakeout.
If you’re more bearish on the euro, then check out that there rising wedge. As y’all can see, bears have entrenched themselves at 112.50 and have been trying their best to push the pair lower. Them bears ain’t giving up without a fight, though, so they keep counter-attacking. As a result, a rising wedge pattern has formed.
A rising wedge pattern is a bearish pattern that usually signals exhaustion on the part of the bulls, although bulls sometimes find a reason to fight on and an upside breakout occurs instead. With that said, a downside breakout from the pattern needs to smash past the area of interest at 122.90 before the break is validated. Y’all may wanna prepare for an upside breakout past 122.50 as well just in case, though. In any case, just make sure to practice proper risk management, a’ight?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.