EUR/USD continues to fall after the recent completion of the well-formed Triangle chart pattern identified by Autochartist on the 4-hour charts. Autochartist rates the overall Quality of this Triangle at the 5 bar level as a result of the low Initial Trend (one bar) and significant Uniformity and Clarity (rated at the 7 bar 8 bar levels accordingly). The completion of this Triangle continues the preceding weekly downward price impulse from the middle of 2011. The top of this Triangle (point A on the chart below) formed when the pair corrected down from the strong combined resistance area lying at the intersection of the 38,2% Fibonacci Retracement of the aforementioned weekly downward price thrust from 2011 as well as the weekly upper Bollinger Band (as can be seen from the second chart below). The pair is expected to fall further toward the Forecast Price 1.2852.
The weekly EUR/USD chart below shows the longer-term picture of this currency pair’s movement:
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