EURUSD – Short Term Rectangle Pattern

EURUSD – Short Term Rectangle Pattern

EURUSD bounced back from the top hit on Friday and retested a local low at 1.3654. The price has drawn a Rectangle pattern right after a clear up move. Statistics shows that from here the probability is higher for the price to break above the resistance of the pattern (1.3685) and continue the previous move. Any bounce, or false breakout, can be a good bullish signal. The upside targets for the continuation of the rally is at 1.3720 and 1.3750.

Don’t stick with only one direction. A close under 1.3654 could mean that bears are putting some pressure and the price might fall back to retest 1.3630/10. From here I am tented to say again long, but the price action should be read again at the given moment.

 

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