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Sunday 4 March 2012

EURUSD - What to expect?

We have two clear technical patterns here: Firstly the longer term down trend which is still intact. However, we count 5 clear contacts with the boundaries already which indicates that a break of this down trend might come soon. Secondly we see a rising wedge which is about to break to the downside after 5 contacts. We had a similar pattern in gold recently where the shorter term rising wedge didn't work out. In the past 3.5 years long term trends always broke after 5 contacts with the boundaries (second chart).

What I expect: The rising wedge will break soon to the downside (downside limit: 1.26) then the long term trend will be left to the upside.


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