#EURUSD Outlook (Diamond Pattern)

Monday, August 8, 2011

#EURUSD Outlook (Diamond Pattern)

After some time drifting up and down, it seems that the Euro has finally shown its face. The pair is inside a diamond formation that will most-likely break south. If and when the pattern is broken south, than it should double its current short-term downtrend.

It took some while to form this one, but all the other formations seemed to be too obvious.

Also, price is currently trading very close to the lower border of an ascending channel that extends from the low of June, 2010. A break (very likely) will send this pair towards the 1.2300 area.

I still maintain my projection for an EURO below parity for the following years.

Tags: #EUROUSD, BUCK, Breakout, Diamond, Dollar, EURO, EURUSD, FX, Forex, Greenback

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Comment by Trebs Acre on August 9, 2011 at 10:48pm: Hello,

Based on this diamond, where do you put the resistance on this current up-move.

Thanks

Comment by mcapitalmarkets on August 9, 2011 at 11:11pm: I don't quite understand your question?

Comment by mcapitalmarkets on August 9, 2011 at 11:16pm: There's a resisting trend line that is being tested/validated as I type this. A break of this line, will most-likely mean an upward move for the EURO. However, Main move of the month, of the week and of the day (so far) are ALL down.

Comment by Trebs Acre on August 9, 2011 at 11:36pm: Thanks,

I think a 4-hour close above 1.44 would push price to 1.46 level.

If not, 1.40 will be tested.

Comment by mcapitalmarkets on August 10, 2011 at 12:32am: Bear in mind the high of the week so far as well as the high of the month. If and when those levels are taken out, than further expansion north could/should be observed.

Comment by Trebs Acre on August 11, 2011 at 8:32pm: Looks like the diamond is holding.

Comment by mcapitalmarkets on August 11, 2011 at 9:44pm: Looks beautiful on daily. Very symmetrical.

Comment by mcapitalmarkets on August 11, 2011 at 9:49pm: By the way, the low of the week was taken out during yesterdays session. Long stops were taken out thus suggesting a short term continued move down. We still have monthly and weekly main move both down.

Comment by Trebs Acre on August 12, 2011 at 5:53am: I like this drawing. It seems like your favorite subject is geometry.

I expect not so wide range swings today and the diamond may hold at least until this week.

Comment by mcapitalmarkets on August 12, 2011 at 8:49am: Not my favorite drawing. But yes, a high percentage formation and not obvious to the average eye/average trader. However, on actual trading, there is way more than just a geometrical form.

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