EURUSD looking to breakdown out of spring

Russell Shor, CFTe, MFTA FXCM

The above chart shows daily price action. The EURUSD has broken down out of its symmetrical triangle (green converging lines). The RSI(9) is below 50 and is indicative of a bearish momentum. Symmetrical triangles are sometimes referred to as springs. This is because price action compresses as the pattern develops. Then about 2/3rds through the pattern, price explodes out as volatility jumps. Today’s candle is yet to close. As such, we are looking to see if it closes outside of the pattern and if the RSI(9) moves further away and south of 50. If this is the case, we will then assess just how explosive the break will be.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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