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EUR/USD - Triangle Within The 1.33-1.34 Range, Breakout Scenarios, Feb 19 2013

Daily Forex Technicals | Written by FXTimes | Feb 19 13 02:41 GMT


EUR/USD - Triangle Within The 1.33-1.34 Range, Breakout Scenarios

Range: Since late Thursday session (2/14), EUR/USD has been settling within a range roughly between 1.33 and 1.34. This comes after a recent bearish trend that started from a high around 1.37. As we begin the week, President’s Day trading has been quiet, and the volatility in EUR/USD dried up as can be seen in the 1H chart, as it goes into triangle mode. A break from this triangle is not significant, but a break out of the 1.33-1.34 range can give new directional clues.

Breakout scenarios: Without considering prevailing trend and momentum, a break of a range 100-pip wide, could project 100 pips away from the breakout point, making the targets 1.35 to the upside and 1.32 to the downside. However, there are some challenges on both sides. To the upside, a falling trendline connecting the 1.3710 and 1.3520 highs might meet a rally around 1.3450. To the downside, the 1.3255 area is a previous consolidation support. Below that is a key rising trendline support going back to July, when the current bullish trend in the daily chart started.

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