It is time to take another look at the euro/dollar forex pair from the 30,000 foot level. The quarterly graph, below, displays two prominent features. First, the 6½-year descending triangle top completed in March 2015 has an unmet target at .8670. Second, the decline in March 2015 found strong support at the 45-year trendline.
The weekly graph, below, displays a 19-month congestion (rectangle on futures continuation graph and a slight symmetrical triangle on the spot chart) that has formed just above the 45-year trendline. If completed on the downside this 19-month congestion would indicate a target of .9630. The weekly and daily graphs also show the completion – as of this past week – of a possible 6+ month H&S top pattern with a target of 1.0428. The 8-week descending triangle on the daily graph (marked in red) has met its target. Factor is short spot EUR/USD, having taken partial profits this past week.
At this point I am inclined to just hang on to my current position and see how things unfold. But, we may be nearing the point of a serious breakdown in Euro Dollar Forex Pair.
Yet, there is a chance this decline can find support under 1.07. I have a desire to extend my short leverage, see daily chart.
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