Euro need to breakout

The Euro Dollar needs a breakout nefore we can really say it is looking very bullish again. That's not to say it is looking weak though. Sometimes you need to stand aside while the bulls and bears fight it out and of course the dumb money lose any profits they might have gained in the trend prior to the consolidation.

Below is a 4 hour chart showing the Euro Dollar in a triangle formation. These are great set ups but in this case we have an all time high resistance to the upside and 200MA to the downside so potential profits are a little limited. With a good entry and even better stop loss we have an opporunity once the squeeze is complete. Stochastics is telling us we are overbought but if we see a false bar then we have a set up initiated.

For those I have trained, you may notice the most recent high on the chart (almost directly above the vertical arrow on the indicator) was a reversal level and subsequenty dropped about 140 pips. If we breakout to the upside then take note of that level.


Chart courtesy of Advanced GET. Data provided by eSignal.

Good trading.

Forex Analysts
Javid Shaik & Anne Chapman