Waiting for a bigger movement on the EuroLast few days are maybe volatile for Gold or Stocks but Euro is holding steady. On most of the pairs with the EUR, since the 5th of August we are witnessing a sideways trend.
Every movement like this should eventually end with the breakout and that is what we are currently looking for.
First instrument in our analysis is the main pair – EURUSD. Here, the sideways trend is shaped like a descending triangle pattern. Normally, this kind of a formation should result with the breakout to the downside but this triangle is different as it was created after a rise, not a drop. In this case, both directions are opened and we just have to be patient. Breakout of the blue line will give us a signal to sell and the breakout of the red line will give us a signal to go long.
Situation on the EURAUD is a bit clearer. Here, we do have an ascending triangle, where we already had a breakout to the upside. Most recent sideways trend, tested the broken resistance as a closest support. Test, was positive for the buyers, which means that we should see the continuation of the upswing.
Last instrument in our review is the Bitcoin, which is also moving sideways. The price is locked inside of the symmetric triangle pattern. Breakout of the upper right line will be a signal to buy and the breakout of the lower blue line will be signal to go down.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis