With the daily chart of the EUR/USD now transitioned to a sideways market cycle, the uptrend has shown it wants to take a breather. But NEVER assume that a trend stall = a trend reversal. With the channel pattern’s uptrend line support, this trend looks like it’s ready to CONTINUE.
The trendline I have been watching closely isn’t just the daily chart’s support - it’s the 240 minute’s resistance. The 240 minute chart transitioned into a downtrend with the dramatic sell-off on October 26th. Today the downtrend line resistance of the falling wedge formation has been broken and while I am also watching the 34ema high to CONFIRM the downtrend reversal on this time frame, the first step — the pattern break — has occurred.
Both charts were created with MT4 and the Autochartist Chart Pattern plug-in.
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