This Great Graphic of the euro was drawn on Bloomberg. It appears to be breaking out of a pattern that resembles a diamond. Often times, technicians view the diamond pattern as a derivative of a head and shoulders pattern, and is mostly seen as a reversal pattern.
This may be an exception. This diamond pattern looks like a continuation pattern. If valid, it would signal a move toward $1.3460-$1.3500.
It is consistent the ideas that Fed tapering may take place later than next month. Recent position squaring in the futures market was more a function of the establishment of new longs, leaving a high level of uncomfortable shorts.
Great Graphic: Euro Diamond Formation as Continuation Pattern
Reviewed by Marc Chandler
on
August 06, 2013
Rating:
Reviewed by Marc Chandler
on
August 06, 2013
Rating:
