EUR/USD: Sell CMP 1.1310 | Stop @ 1.1400 | Target @ 1.1105—1.0900 OR
EUR/USD: Buy Above 1.1400 | Stop @ 1.1200 | Target @ 1.1830—1.2320
The technical chart of EUR/USD shows Symmetrical Triangle Pattern formation. EUR/USD is trading near the higher resistance trend line. Prices are still well within the range of Symmetrical Triangle Pattern and may give a fall from the falling resistance trend line. EUR/USD prices fell from 1.1495 (Oct 15) to 1.0515 on December 3 and thereafter went into the consolidation phase, forming the Triangle Pattern with higher bottom and lower top.
Height of the Triangle is 980 points, which is the difference from 1.1495—1.0515 levels. A breakout can be seen on either side. The prices are expected to move higher if the contract crosses 1.1340. However, if prices fails to cross the resistance level on closing basis, fall in prices are expected and short-term downtrend can bring the prices to the lower support level.
If the contract crosses higher resistance level of 1.1340 then prices may test 1.1830—1.1220. But if the contract reverts from current level and sustain its trading below 1.1340 on closing basis, then prices could fall to 1.105—1.0900 levels, which is the lower trend line of the Triangle Pattern.
Breakdown in EURUSD is expected in long term if the prices trades below 1.0900 on closing basis. Positional lower target comes to level below 1 Dollar to 1 Euro and can test the level of 0.9920 level which is height of the triangle from the Apex point crossover at 1.0900. However Sustain trading above 1.0340 — 1.0400 might bring higher level of 1.1830 — 1.2320 level in near term.
