Charts are interesting. Things have been slow on EURUSD lately, yet the long term charts are still providing useful and valid information. It just doesn't seem like it when you're waiting weeks, even months, for something to happen or to see if price will, indeed, respect various technical levels, or if technical analysis has finally broken down and chaos reins.
Here is a triangular pattern forming on the daily EURUSD chart, which shows price not wanting to go below 1.30, and now, it's hit a bearish trend line 3 times.
3 times! That's verification, folks! It feels like magic is working.
(Daily hour EURUSD chart)
From the above chart, where price has most recently met the bearish trend line, we can see a pin bar form. This is often a clear reversal signal.
Actually, there are two. Here they are high-lighted:
(Daily hour EURUSD chart)
While things have seemed slow, there was an actual bullish trend on the 4 hour chart, shown below in orange. But see how price last night broke through the trend line? This is after forming the pin bars on the daily chart and hitting the bearish daily trend line.
(4 hour EURUSD chart)
So exciting! Technical analysis works!
Where price is going next, who knows. But let's not get too excited, as it's entered the "cloud" on the daily Ichimoku Kinko Hyo chart, so it may slow down. Oh boy, the EURUSD slowing down? Never!
(Daily hour EURUSD chart with Ichimoku Kinko Hyo)
I've pretty much decided to start focusing on other currency pairs for my trades, but I'll keep using EURUSD for analysis purposes on this site. But there probably won't be many predictions or trade ideas until the EURUSD does something significant. I certainly don't feel comfortable predicting anything at the moment, except the usual sell below 1.30 and buy if price breaks above the daily bearish trend line.
