Forex Signals - EUR/USD Ascending Triangle Setup

By IBTimes Staff Reporter | May 10 2010 9:53 PM

Discussions got a little heated on the boards yesterday for a few members and that is OK, but remember to always be respectful of fellow traders on PipHut. Everyone is welcome to post on PipHut as long as their posts are helpful to the community and constructive. Let me worry about spammers. Just sit back, relax and make some pips - we are all here for the same reason.

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Daily Outlook: My fundamental analysis remains little changed from yesterday so read yesterday's signal for that. One thing to add is this: another point of concern for investors eyeing the Greek conflict unfold are the riots in Greece against the austerity measures that are crucial to them receiving bailout money in the first place. So the German public doesn't want to lend the money, and the Greek public doesn't want to accept in on the decided terms. Yikes.

Technically we saw the forecasted drop off of resistance yesterday which leaves me squarely in the bear camp still. We do have a rising support trend line though (see bottom blue line on chart) which forms an ascending triangle combine with the resistance level of 1.3050 (see blue lines on chart below). The rising trend support of that ascending triangle could provide scalpers with some nice long opportunities, but I will look to sell on a break of that pattern.

Trading Idea: Primarily I will still look to short at the top of this ascending triangle pattern at 1.3060 with short targets at 1.3030, 1.3000, 1.2970, 1.2940 and eventually 1.2875 for 185 pips profit. Secondary trade would be a short on a sustained break of the rising trend support (bottom blue line). An aggressive trade would be a long at the rising trend support in anticipation of it rising back up to 1.3060.

Good luck PipHutters, lots of good setups today!