FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
21,387,785Confirmed
764,110Deaths
14,169,357Recovered
Fetching Location Data…
Advertisement
Advertisement
Tomasz Wiśniewski
EUR/USD EUR/GBP DAX

After Monday’s all mighty upswing, Tuesday brought us a bearish correction. So far, the size of this correction is very small and it seems that buyers are still in control of the situation. Today, we don’t have any major events in the macro calendar, so we expect that optimism will not go away and global indices will remain bullish.

We can see two inverse head and shoulders pattern on the DAX. The first one gave us the buy signal on Monday and the second one is being created as we speak. The bottom of the head is on the 23,6% Fibonacci level and the neckline is on the 11100 level. A breakout of the neckline will significantly increase the chances for another bullish wave.

Next, we have two setups with the EUR. Yesterday, the price of the EURUSD bounced from the upper line of the triangle but that wasn’t the only attempt to break this resistance. Buyers are trying again today but so far; the result is pretty much the same. Technically, the price is creating a head and shoulders pattern. Currently right shoulder is being created but the results should be out soon. A breakout of the red neckline will give us a signal to sell and a breakout of the upper blue line will deny the H&S pattern and bring us a mid-term buy signal.

The second setup is the EURGBP, which has recently been moving with grace, respecting the most popular price action principles. After a triangle and a pennant, we currently have a rectangle, which is a trend continuation pattern. Most recently, the price bounced from the lower line of the rectangle and the mid-term up trendline. A further breakout to the upside looks imminent.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk