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EUR/USD: Expanding Triangle, Possible Final Flag

ByAl Brooks
Published 09/22/2022, 10:55 AM
Updated 07/09/2023, 06:31 AM

EUR/USD Daily Chart

  • The EUR/USD is forming an expanding triangle (blue lines) and is currently setting up a lower low major trend reversal.
  • Bulls see the trading range from August 23 to September 20 as a final flag and expect a reversal up to 1.000, which is the midpoint of the trading range.
  • Bulls want a strong reversal bar and consecutive strong bull trend bars, which would increase the odds of an upside breakout and test of the September 12 close.
  • Bears want to trap the bulls here and get a measuring gap with the breakout below the September 6 close, however, they will probably fail, and the market will reverse back up to the 1.000 big round number.
  • Traders will pay attention today to see if the bulls can get a solid reversal bar trapping the bears and making bears decide if they should exit above. Bears want to get another strong bear trend bar today or at least prevent the bulls from getting a bull close.

Latest comments

This is where technical analysis gives way to the fundamentals. Being ignorant of the news is very costly. Pretty much all year Al expected the bulls to step up and time and again the bears win, why? why do the Bulls keep capitulating? The answer is clear if you look at the fundamentals. What is the EU doing?
The EU is raising rates like a bat out of ****right when they are placing sanctions on Russian energy after years of their global warming woke policies which have shut down coal and even nuclear power plants in exchange for wind and solar. Here's the problem, there is simply no alternative to Russian energy especially after Biden has been begging for our enemies to sell us oil like Iran and Venezuela while placing the most anti-oil policies and regulations on American oil 🛢 which has cut capital investment to the lowest level in decades.Nothing impacts GDP more than the cost of energy and interest rates. The EU has hiked rates up aggressively and slashed access to cheap energy and the are now buying oil from India and China who intern get it from Russia. So now they are closing to pay 50% more for their Russian oil just to make a woke political statement.
What this means is that Germany, Italy and Britain are beginning to see PMI crash as companies scale back production and many may end up closing their doors. Why? Because of a suicidal self inflicked policy to attack global warming and Russia at all cost even if it destroys them. This hast hurt Russia to the tune of about $100B. But it is costing the EU and the collective West trillions.
So why is the USD so strong? Simple, Fed Reseve is also hiking rates but unlike Europe, the US 🇺🇸 has an abundance of cheap carbon fuels and when oil shot up Americans cut back demand causing our energy costs to normalize. So US companies will out perform European companies because manufacturing in the US will easily out perform EU companies. Added to the problem is China’s zero covid policy has cut demand there by the biggest decline in decades. And Japan has refused to raise rates like other central banks and all of this together causes an unprecedented surge in the USD.
he is always on bullish side
There are plenty others on Bears side
I got the same impression.
so far its only been "sideways to the" down... lets see
seems like your analysis ain't working dude
Analysis is messed up dude. It will rebound above beyond 1.3800 then will make another correction down Trend
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