The last few days maybe have been volatile for gold and stocks, but the euro is holding steady. We’ve been witnessing a sideways trend on most EUR pairs since the 5th of August. All movements like these should eventually end with a breakout, and that is what we are currently looking for.
The first instrument in our analysis is the main pair – EURUSD. Here, the sideways trend is shaped like a descending triangle pattern. Normally, this kind of a formation should result in a breakout to the downside, but this triangle is different as it was formed following a rise, not a drop. In this case, both directions are open and we just have to be patient. A breakout of the blue line will give us a signal to sell and a breakout of the red line will give us a signal to go long.
The situation on EURAUD is a bit clearer. Here, we have an ascending triangle, where we’ve already had a breakout to the upside. Most recently, the broken resistance was tested as a closest support. The test was positive for the bulls, which means that we should see the upswing continue.
The last instrument in our review is bitcoin, which is also moving sideways. The price is locked inside of a symmetrical triangle pattern. A breakout of the upper right line will be a signal to buy and a breakout of the lower blue line will be signal to go short.