EUR/USD 30min and Daily Pattern Alerts

As the U.S. Dollar pierces the 85.00 level the weakness in the greenback has pushed the EUR/USD higher up through not only the 1.3100 level but also the 1.3200 levels as well.  The initial set up was an intraday trend follow which has now led to the daily with breakout set ups of its own.  That is one of the many powerful aspects of Autochartist:  You can see the ebb and flow of the market across multiple time frames.

The uptrend was a classic Continuation Channel Up which we are seeing now it’s latter stages as prices are perhaps looking for a pullback after a 200 plus pip rally.  The Forecast Region on the 30 minute chart points to a resistance area between 1.3290 and 1.3320.

If a pullback and another leg of buying begins going into today’s London close or even next week’s open, keep an eye on the Continuation Flag on the daily EUR/USD.  The breakout level is above the Forecast Region of the 30 minute chart pattern alert as the downtrend line pierce would occur at approximately 1.3380.

The Initial Trend is high on the pattern which is certainly fine but not necessarily required on a flag.  Flags most often occur in a slight trend or a distribution market.  The market cycle in the EUR/USD is arguably a distribution that has developed.  Over the past month the EUR/USD has sold off almost 900 pips which has given the Initial Trend reading the high marks is has.  This flag is also commonly known as a bull flag.