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EUR/USD - Triangle Consolidation
Posted on June 18, 2009 at 13:29 in Analysis by James Chen

EUR/USD Daily ChartAfter failing at a head & shoulders reversal and rebounding around the key 1.3750 support/resistance region, price action on EUR/USD, a daily chart of which is shown, has formed a rough triangle pattern. Currently, price is near the upper border of this converging consolidation of progressively decreasing volatility. A breakout to the upside of this triangle should prove pivotal for this pair. In this event, the clear upside resistance target resides around the last high in the current uptrend, in the 1.4335 price region. Any break below the noted 1.3750 support should target further downside support in the 1.3550 price region.

4 Responses to “EUR/USD - Triangle Consolidation”

  1. on 18 Jun 2009 at 2:49 pm1maxu08

    most likely will go north - 200 SMA shows uptrend for h4, d1 and w1. On your chart and analyses i didn’t saw 200 SMA although i know that you like it :)) why?

  2. on 18 Jun 2009 at 5:01 pm2Brian

    Just starting out day trading currencies. Have started to read two books one by Jared Martinez, and the other by Petere Rosenstreich. Would you have any input or advice onto enter and exit strategies?

    Thanks in advance for any help you can share.

    Brian

  3. on 19 Jun 2009 at 2:38 pm3James Chen

    Hi Maxu,

    Thanks, as always, for visiting and for your question. Yes, I do often like to use the 200 SMA, as well as the 50 SMA. Usually, I at least have the 50 SMA on my charts, but often the 200 as well. I just haven’t happened to have the 200 on my recent charts. But thanks for the heads up on that!

    - James Chen

  4. on 19 Jun 2009 at 2:42 pm4James Chen

    Hi Brian,

    Thanks for visiting this blog! The books you are reading are very good. For my input and advice on entry/exit strategies, I actually have a book entitled, “Essentials of Foreign Exchange Trading”, that just came out in March. It is available in bookstores and on Amazon.com. In that book, I discuss many entry/exit strategies. Hope that helps. Thanks, Brian!

    - James Chen

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