8-point observations for EURUSD according to two equidistant channels
This is a simple EURUSD analysis according to two equidistant channels.
Observations
- EURUSD appears to be sliding downwards according to the pink equidistant channel with 3 points of contact.
- Blue channel below which is more gradual is equally valid with also 3 points of contact.
- Blue may become support.
- If Blue does not offer support, EURUSD continuing downward according to pink would be very compelling short.
- This outcome also points to USD rally.
- If Blue does offer support, EURUSD may converge and get trapped inside apex according to both channels (see black dotted lines).
- This outcome offers ranging trade for day traders but becomes difficult to read.
- It could also possibly become a descending wedge followed by a bullish move.
EURUSD day chart
A straightforward EURUSD short if the pair continues down the pink channel should be easier to manage and more exciting. Should there be a reversal, appearance of wedge is an early indicator.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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