The EURUSD pair hasn’t moved much over the last 6 days. We are locked in a sideways trend, but that doesn’t mean that there’s no action to be seen. Everything is taking place around a crucial long-term support, so it’s no surprise that buyers and sellers are fighting for every single tick here.
This takes us back to the long-term symmetrical triangle pattern that has been forming on the chart over the past few months. After a series of losses, the pair decided to break the lower line of this pattern. The breakout happened on the 11th of February, and to be honest with you, it was pretty strong. Aside from the breakout of the lower line of the triangle, we additionally broke two horizontal supports (yellow). The pair didn’t go much lower than this, though. Buyers then went on the counter attack. Then sellers took control, then the buyers again. And that brings us to the latest situation on the chart – an upswing. On Friday, EURUSD created a beautiful hammer candlestick pattern. That was a tempting invitation for buyers.
The new week starts with a strong rise. The price is coming back inside the symmetrical triangle pattern. If buyers close the day above the lower blue line – a buy signal will be triggered. That positive sentiment will be mostly the outcome of the false breakout pattern that we are witnessing right now (bearish one, from the triangle). The positive sentiment will be cancelled if we close the day below the lower yellow line, but chances of this happening are rather limited.