EUR/USD right angle triangle

October 16, 2005 by Trader Rich

I’ve been reviewing the daily charts for the EUR/USD and it looks
like there is a right angle triangle formation in play that strongly
favors the USD.

The
red line in the graph above is the 25 day simple moving average and
this looks to also be a resistance level. The EUR/USD has been
following this line since the 12th of September and is a strong
resistance level now that the price has bounced off this line on 4
occasions (October 6, 7, 10th, and 14th). I’m going to continue
to watch the pair and as long as the price doesn’t break the 25 day
SMA (1.2088), it’s going to be a short play for me.

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