EUR/USD Forex apex of triangle in diamond pattern
The EUR/USD Forex market on the daily chart has been in a trading range for 8 months. There is now a triangle after an expanding triangle. This is a diamond pattern. Any trading range is a Breakout Mode pattern. When the trading range is a triangle, a breakout attempt usually begins soon.
Most computers redrew the triangle today. They are now using the March 27 high as the 1st point of the bear trend line. This results in a more symmetrical triangle, which will make more computers watch for a breakout within the next week.
OVERNIGHT EUR/USD FOREX TRADING
The 5 minute chart of the EUR/USD Forex market had 2 legs down over the past 2 days following last week’s wedge top. That meets the minimum expectation for the bears. They bought back their shorts overnight when the EUR/USD fell below yesterday’s low. The bulls bought as well.
The two lines of the triangle on the daily chart are converging and are now very close. That increases the chance of a breakout coming within the next week.
The breakout will be either a big bull or bear trend day. Until then, day traders will continue to look for reversals for scalps.
Since the daily chart is at the apex of the triangle, support and resistance are nearby. This results in smaller legs up and down and smaller scalps. Day traders are ready for a breakout and a big trend at any point soon.