EUR/USD breaks out of descending triangle – Is it good time to short?
Arslan Butt • 1 min read
What’s up, fellas.
Recently, we have a bearish breakout in the EUR/USD and it can be a good opportunity to short the pair. As we can see from the 2-hour chart, the EUR/USD was consolidating in a descending triangle pattern which supported the pair above $1.1730.
Historically, the descending triangle pattern breaks out on the lower side and that’s exactly how the market has reacted. As you know, the Federal Reserve has hiked the interest rate from 2% to 2.25%, which is why the dollar seems to get stronger.
The pair is peaking out of the pattern and seems to violate the 1.1730, the triple bottom support area. The confirmation of breakout can lead the pair towards next target level of $1.1690 and $1.1650. So, the idea is to wait for a retracement below 1.1730 and enter a sell trade to target the given levels.
Stay tuned to FX Leaders signals page to capture a quick trade in it. Good luck!