13 Jul 2015
EUR/USD: Potential for a triangle consolidation - Goldman Sachs
FXStreet (Bali) - The FX Strategy Team at Goldman Sachs notes that following a series of corrective swings since May in the EUR/USD market, it now has the potential to turn into a triangle consolidation (ABCDE).
Key Quotes
"Everything on the 4-hour intraday chart either meets an ABC equality target or looks like an ABCDE wedge; both are textbook corrective patterns."
"The next resistance level to note is up at 1.1240; 61.8% off the Jun. 18th high. Support stands down at 1.0930 (an ABC off the Jun. 18th high."
"The trend of lower highs and higher lows since May 15th suggests that there is potential for this to turn into a triangle consolidation. If this is the correct interpretation then resistance (the top of the triangle) should be up at 1.1419. Further confirmation will be given by a daily close above the July downtrend which is now at 1.1179."
"The trend across the lows since May 27th (triangle support) is down at 1.0927."
Key Quotes
"Everything on the 4-hour intraday chart either meets an ABC equality target or looks like an ABCDE wedge; both are textbook corrective patterns."
"The next resistance level to note is up at 1.1240; 61.8% off the Jun. 18th high. Support stands down at 1.0930 (an ABC off the Jun. 18th high."
"The trend of lower highs and higher lows since May 15th suggests that there is potential for this to turn into a triangle consolidation. If this is the correct interpretation then resistance (the top of the triangle) should be up at 1.1419. Further confirmation will be given by a daily close above the July downtrend which is now at 1.1179."
"The trend across the lows since May 27th (triangle support) is down at 1.0927."