EURUSD Wedge Breakdown Progress on Monday – Continuation

The EURUSD’s volatile breakout through the wedge pattern on Friday May 20th saw downside continuation on Monday.

How did the 1H DIBS Fare? The Monday session did not produce any DIBS signals on 1H time frame during London session, but late in the Asia session session there was an inside bar breakout that succeeded in front running the London session “risk off” movement in EURUSD. This breakout was a solid performer as it involved about 20-pips of risk and the EURUSD session lows were approximately 100-pips below the trigger level.

30M TF Printed More Signals than 1H: Not entirely surprising that the 30M chart saw a few more inside bar breakouts than the 1H chart, and on Monday’s continuation to the downside there even were some M30 DIBS signals that appeared during the London trading session. The first two signals appear with green arrows pointed at them on the M30 chart and it’s clear that they were able to achieve better than 1:1 free-trade targets.

Image001

What’s next for EURUSD? Looks as though the break of the 1.4000 big round number so early in the week raises the likelihood that EURUSD will break to further lows during this week as it attempts to establish support. If price makes it down to the low 1.3900’s, then we’ll be looking at a 1000-pip tumble from the highs printed early this month in the run-up to the ECB interest rate announcement and press conference. Maybe a 1000-pip tumble within a 3-week period will see the EURUSD take a rest and try and establish a new trading range before pulling back higher or continuing to make further downside.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: