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Can We Expect Long-Term EUR/USD Downtrend to Continue Following This Symmetrical Triangle Breakout?

May 17, 2020 (Last updated on May 28, 2020) by

EUR/USD is a currency pair that is probably on every trader’s radar nowadays as it is consolidating since early march after two years of a steady downtrend. The symmetrical triangle we are looking at on the weekly timeframe chart is a nearly perfect example of a continuation pattern. However, before the actual breakout to the downside occurs, it is premature to open any long-term positions on this FX pair.

The triangle is marked using the yellow lines on the screenshot below. The cyan line mark my entry level, which is at 10% of the triangle’s base width below the lower border. The green line marks my future take-profit level, which is located at 100% of the triangle’s base width below the lower border. I will set my stop-loss to the triangle’s highest point (1.12360). I strongly believe that this triangle serves as a continuation pattern for the previous bearish trend, hence I will ignore any bullish breakouts from it. You can click on the image below to see a full-size screenshot:

EUR/USD - Symmetrical Triangle Pattern on Weekly Chart as of 2020-05-17

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/USD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2020-05-28: I have cancelled this setup because the exchange rate has broken up to the upside:

EUR/USD - Symmetrical Triangle Pattern on Weekly Chart as of 2020-05-28 - Post-Cancellation Screenshot

If you have any questions or comments regarding this symmetrical triangle on the EUR/USD chart, please feel free to submit them via the form below.

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