EUR/USD in a symmetrical triangle?

Published on Thursday March 11th, 2010 at 01:52AM by ghomey

How would you play this?Based on my chart (4h), it appears that the EUR/USD is in a triangle. I'm thinking about a break out strategy. My fundamental bias is bearish, and the trend is sideways/bearish. In the long-term, my bias is bearish due to the credit crisis which is weighing on the Euro. However, I read Elliot Wave counts from various websites, and the good analysts are looking for a correction upward. I respect the wave counts and tend to agree that this trend is a overdue for a correction. Also, the news on Greece is old, it has been factored in to the market by now. Short of any major revelation, I think any news on Greece will not change the market trajectory in the long term.Longterm, I favor downside, and the current trend is bearish. The next two weeks, I favor an upside correction. I think this will break out to the topside. So I'm a little conflicted on how to approach this one as I like to trade with trend and my bias as I think an upward breakout could be profitable. See the chart, I've drawn the triangle, and it appears that the range has been narrowing for well over a month now. On the top of the triangle, price has been obeying the narrowing boundary. On the other side, support may be forming around 1.353. I think the 200 hr sma could factor into any topside movements.

Any other thoughts, suggestions, feedback?
  • 5 comments
  • Go to Pipstradamus's profile

    On Thursday March 11th, 2010 at 06:27AM by Pipstradamus

    In the near-term, I favor an upside breakout as well. But I'd fade any initial breakouts.
  • Go to buruguduy's profile

    On Friday March 12th, 2010 at 05:27AM by buruguduy

    "The next two weeks, I favor an upside correction. I think this will break out to the topside."Looks like your initial guess is correct. EURUSD broke up topside, hitting 1.3750++
  • Go to buruguduy's profile

    On Friday March 12th, 2010 at 05:29AM by buruguduy

    Good call, by the way.
  • Go to ghomey's profile

    On Friday March 12th, 2010 at 11:41PM by ghomey

    I have a tendency to get them right when I don't have money on it :)
  • Go to ghomey's profile

    On Thursday March 25th, 2010 at 06:43PM by ghomey

    Pipstradomus gets the gold star, fading the breakout was the right move...

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