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23.01.2008 - Technical Analysis: EURUSD in the long term

  • Description

Date: 2008-01-23 14:43

An ABCD price pattern has been currently forged on the EURUSD market, with the following relations:


Interval: D1
Levels:
Support: 1.4309
Resistance: 1.4921, 1.4965

Description:

An ABCD price pattern has been currently forged on the EURUSD market, with the following relations:

- 88.6% BC = CD
- 78.6% AB = CD
- 88.6% AB = BC

What does this mean to me?

This means that:

- After breaking the level of 1.4309 the decrease to the level of 1.3641 is very probable.
- After breaking the level of 1.4921 the increase to the level of 1.5473 is very probable, though higher expectancy is put on the next probable level of 1.5624.

What should be kept in mind?

- Candlestick formations should be observed during the break out, form the mentioned levels. Remember that the market does like to fool us. Let us not allow this to happen.
- We should also keep in mind that trading on price patterns is based on probability, so do not forget about your stop loss.

Pic.1


Omar Arnaout