EUR/USD breaks out of 7 months pattern

October 29, 2015 in Chart Alert

In the “Alerts – Observations – Watch Outs” sub-forum of our Forex forum section we had been talking about the ascending triangle pattern of EUR/USD. In the last alert we had indicated the following:

“Any decisive break below 1.1060 should extend the decline to test the 1.1000 to 1.1020 support first and then possibly more. However, the psychological aspects of approaching parity level may cause some volatile upward moves and hence caution is required.”

The pair had moved the way we had indicated. During last week the pair had broken the support of the base of the triangle slightly. However, this week’s moves brought a decisive break from the pattern. Not only that but that previous support level acted as resistance.

EUR/USD breaks out of 7 month chart pattern.
Please note that for past 7 months the price action was contained in this pattern. We now expect a test of 1.0809 first and if that support fails then further decline towards the low of 1.0470 will be expected.

And upside will be expected to be limited to 1.1105 to 1.1135 resistance zone.

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