- The last few days maybe have been volatile for gold and stocks, but the euro is holding steady. We’ve been witnessing a sideways trend on most EUR pairs since the 5th of August. All movements like these should eventually end with a breakout, and that is what we are currently looking for.
- The first instrument in our analysis is the main pair – EURUSD. Here, the sideways trend is shaped like a descending triangle pattern. Normally, this kind of a formation should result in a breakout to the downside, but this triangle is different as it was formed following a rise, not a drop. In this case, both directions are open and we just have to be patient. A breakout of the blue line will give us a signal to sell and a breakout of the red line will give us a signal to go long.
- The situation on EURAUD is a bit clearer. Here, we have an ascending triangle, where we’ve already had a breakout to the upside. Most recently, the broken resistance was tested as a closest support. The test was positive for the bulls, which means that we should see the upswing continue.
- The last instrument in our review is bitcoin, which is also moving sideways. The price is locked inside of a symmetrical triangle pattern. A breakout of the upper right line will be a signal to buy and a breakout of the lower blue line will be signal to go short.
Alpari - Analytics
