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EUR/USD Trade Idea for the Next Week

April 13, 2008 by

The current situation on the EUR/USD daily chart seems like a good preparation for the long position. If you look at the picture below you’ll see three highs almost at the same level — 1.5902 on March 17, 1.5896 on March 31 and 1.5913 on April 10. The corresponding lows of these highs conclude an uptrend. Altogether they form an ascending triangle, which is the known continuation pattern:

EUR/USD Ascending Triangle Pattern

Somewhere next week I expect the upper horizontal line to be broken and EUR/USD will be ready to head for the new absolute maximum near 1.6300-1.6500. I will probably set up a stop buy order at 1.5914 with a stop-loss near 1.5700 and target at 1.6350 to check this idea. But it will probably take a week or two to break the support level.

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