Patterns: USD/ILS, EUR/RUB

USD/ILS 1H Chart: New medium pattern takes over

The situation on the USD/ILS charts is initially hard to understand, as the already broken patterns are still drawn on the chart.

Namely, the previously active ascending medium term pattern is still observable on the charts. However, one should concentrate on the new medium term descending pattern.

In the borders of that pattern a junior channel up pattern has already guided the currency rate up to the resistance line of the medium term pattern.

In regards to the near future, the pair is set to get squeezed in between the various hourly SMAs, lower trend line of the junior pattern and the resistance line of the medium term pattern. If the dominant pattern holds its ground, the squeeze should end in a break out to the downside.

EUR/RUB 4H Chart: Larger scale review

The previously described ascending channel pattern of the EUR/RUB currency exchange rate was broken last week. With the breaking of that pattern a new massive scale descending pattern was revealed.

In the aftermath of the breaking of the channel up pattern a narrow ranged descending pattern, which represented the following plummeting of the Euro against the Russian currency. In addition, during the move the previously active long term channel up was broken, and its support reconfirmed as resistance.

The short version is that the pair is unlikely going to be guided by the narrow channel down. However, expect the reveal of a new long term descending pattern. The junior channel down just shows the first move in the borders of a larger pattern.