EURO: Support 1.3200 – 1.3450 – 1.3550 Pivot 1.3700 Resistance 1.3800 – 1.3950 – 1.4200
EURO: A Pennant (Bearish) is considered a bearish signal, indicating that the current downtrend may continue. A Pennant (Bearish) follows a steep or nearly vertical fall in price, and consists of two converging trend lines that form a narrow, tapering flag shape. The Pennant shape generally appears as a horizontal shape, rather than one with a downtrend or uptrend. Apart from its shape, the Pennant is similar in all respects to the Flag. The Pennant is also similar to the Symmetrical Triangle or Wedge continuation patterns however; the Pennant is typically shorter in duration and flies horizontally.
Looking at the chart Euro after the fall from the higher level of 1.4250 has tested the level of 1.3600 and after the fall has been in the consolidation phase and was showing higher bottom formation and was facing good resistance at 1.3850 level where selling was seen at higher level. Closing basis was not above to holding the level above 1.3800 and selling pressure was seen at higher level. . On lower side support was seen at 1.3700 which was the rising trend ling and today it has convincingly broken the same and is expect to move further down side. The highest of the Pole is 650 pips and crossover below 1.3700 brings the lower target of 1.3200 to 1.3100 levels. This is near the previous bottom what we have seen around September 2011
