The whole move up from the May lows looks rather mature and there is a strong possibility now that a correction lies on the horizon. On the 4-hour chart you will see the volatile highs and lows forming a rare diamond top pattern. If prices fall below 1.5749 then that would trigger the breakout from the diamond with a target of 1.5500, although for something ‘closer to home’ opt for the monthly pivot at 1.5650. If prices break above the recent highs at 1.5920 then the pattern will have failed and prices may run up rapidly to the next level of resistance at 1.5988 where the R1 pivot rests.
Similar Posts:
- EUR/USD could correct to 1.3610…or lower
- Daily Forex Analysis – June 16, 2011
- EUR Marches on News
- Daily Forex Update: USD/CHF
- Daily Forex Analysis – July 20, 2011
