24 Jan 2014
Flash: EUR/USD still bullish on 3-box P&F charts - FXStreet
FXstreet.com (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that EUR/USD remains bullish on the 3-box Point and Figure chart.
Key Quotes
“The 1.2950 downside target is now validated despite of the recent upward trajectory in the EUR/USD. Validation came with a dip the 1.35 figure with a so-called double-bottom breakout.”
“A bullish objective line (thick green) and two internal lines confirm the strength of the prevailing trend is still intact under a 30 pip 3-box reversal perspective. As such, the 1.4840 active target mentioned last week is still operative.”
“Enlarging the box size to 30 pip and switching from the 60 minute close to a daily close gives similar unambiguous signals. To obtain more detail of the price action, vital for understanding the supply and demand forces involved, the below 1-box chart can be used.”
“Here, a subjective support line has been broken on a double-bottom signal allowing for a horizontal count of 1.3360. Interestingly, this target is coincident with a 200-SMA on a conventional bar chart. Another difference to those charts is how the 1.38 appears to firmly cap the top side of the chart, thus conditioning what has happened since those highs.”
Key Quotes
“The 1.2950 downside target is now validated despite of the recent upward trajectory in the EUR/USD. Validation came with a dip the 1.35 figure with a so-called double-bottom breakout.”
“A bullish objective line (thick green) and two internal lines confirm the strength of the prevailing trend is still intact under a 30 pip 3-box reversal perspective. As such, the 1.4840 active target mentioned last week is still operative.”
“Enlarging the box size to 30 pip and switching from the 60 minute close to a daily close gives similar unambiguous signals. To obtain more detail of the price action, vital for understanding the supply and demand forces involved, the below 1-box chart can be used.”
“Here, a subjective support line has been broken on a double-bottom signal allowing for a horizontal count of 1.3360. Interestingly, this target is coincident with a 200-SMA on a conventional bar chart. Another difference to those charts is how the 1.38 appears to firmly cap the top side of the chart, thus conditioning what has happened since those highs.”