Tuesday, July 26, 2011

EUR/USD Triangle Breakout - 26 July 2011

There has now been a break above the upper triangle boundary line signalling a bullish breakout. Whilst the pair will probably go higher the rally from the 17th looks a little mature and it is possible there will be a pullback to support at 1.4350 intially. 

We appear to be in an especially volatile climate and a daily close clearly above the triangle would provide positve additional confirmation. 

The upside target for the breakout is 1.5321, which is still far off and a nearer target would be the point and figure count to 1.4570.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst