7 Mar 2016



The rate broke a couple of important pattern resistance levels last week. First let's take a look at each of them seperately:

  1. The rising wedge (in red) - When the rate broke the apparent symmetrical triangle formation and then bounced higher testing the former support as the new resistance, it seemed the rising wedge is signalling about a consolidation before a continued down move. It, however, made an upside break opening a way towards the 61.8% and 100% pattern breakout targets at around 0.7465 and 0.7595 the former of which may also be the long term broken rising trendline resistance coming in as the new support.
  2. The falling channel (in green) - The rate has also broken a falling channel formation opening a way towards it's 61.8% and 100% breakout targets at around 0.7600 and 0.7800.
As you can see on the chart the channel's 61.8% breakout target is also overlapping with the wedge's 100% target and it's 100% target with the wedge's 161.8% target. This double bullish breakout turn's my immediate bias to bullish.

I am at the moment flat on the pair as the market has oppened with a bit of a inside gap. A break above the Friday's high at 0.7442 may work as a confirmation that the rate is ready to head for the breakout targets straight away, however, I'd prefare a pullback to the former broken resistance levels around 0.7270-0.7290 to test this as the new support, before entering any long positions.

For deeper knowledge on how the Forex market works and how to trade it simple check out our Forex Online School

If you don't want to miss any new trade ideas and updates, subscribe to one of our Trade It Simple Signal Service Plans and receive in your E-mail:
  • Entry details
  • Take-profit details
  • Stop-loss details
  • Trade updates


Post a Comment