EUR/USD Rallies, Triple Top Pattern In View
Shain Vernier • 1 min read
The forex has been alive throughout today’s U.S. session. Following announcements from the European Central Bank (ECB) and the lagging CPI number out of the U.S., exchange rates across the majors have been in a state of flux. The Greenback has been the big loser on the day, slipping against the Euro, Swiss franc, and British pound. One of the biggest movers-and-shakers has been the EUR/USD, with values driving north toward a key technical area.
EUR/USD Technical Outlook
Today’s action in the EUR/USD has brought the Triple Top Pattern near 1.1750 into view. Several weeks back, we just missed out shorting this level. Price rallied to 1.1733 before posting a nice 200 pip reversal.
Here are the levels to watch for the remainder of the forex session:
- Resistance(1): Psyche Level, 1.1700
- Resistance(2): Triple Top, 1.1750
Bottom Line: Until Friday’s closing bell, I will have sells queued up from 1.1744. Using a large initial stop at 1.1801, this trade produces 50 pips when implementing a sub-1:1 risk vs reward management plan.
With U.S. Retail Sales (August) due out during tomorrow’s U.S. pre-market hours, this trade has a chance of going live before the weekend break. In the event that it does, be sure to check out the Comments section below for tips on how to minimize risk while maximizing reward.
Timing will be everything in relation to the success or failure of this trade. Earlier in the week, a surprise API crude oil stocks report doomed a USD/CAD long position. Thursday’s USD/JPY recommendation went unelected and void into today’s CPI release. With a bit of luck, this EUR/USD Triple-Top short will hit entry by the end of the week.