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EUR/USD Formed Symmetrical Triangle on Daily Chart

July 22, 2018 (Last updated on August 27, 2018) by

The consolidation phase, which the EUR/USD currency pair has entered following a rapid downtrend in April, lasts for quite a long time now. Its apparent symmetrical triangle form promises an interesting opportunity for shorting EUR/USD once the downside breakout occurs.

You can see the sides of the triangle marked with the yellow lines. The potential entry level is at the cyan line, which is placed at 10% of the triangle’s base width below the lower border. The take-profit level can be placed to the green line, which is positioned at 100% of the triangle’s width below the lower border. I will set my stop-loss to the high of the breakout candle here. If that candle trades mostly outside the triangle, I will set my stop-loss to the high of the preceding candle. I will ignore bullish breakouts from this triangle as it is a continuation pattern that follows a downtrend. You can click on the chart to get its larger version:

EUR/USD - Symmetrical Triangle Pattern on Daily Chart as of 2018-07-22

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 2018-08-07: The short entry has been triggered yesterday at 00:21 GMT. The open price was 1.15581 with stop-loss at 1.16669 and take-profit of 1.10375:

EUR/USD - Symmetrical Triangle Pattern on Daily Chart as of 2018-08-07 - Post-Entry Screenshot

Update 2018-08-27 17:40 GMT: After a rather significant drop, following the breakout, the currency pair bounced and hit my stop-loss today at 14:55 GMT:

EUR/USD - Symmetrical Triangle Pattern on Daily Chart as of 2018-08-27 - Post-Exit 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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