EUR/USD

Jackozy, this i s not a reversal pattern as it's only a three-wave move: it'll be a correction down to around 1330 before continuing higher. All just MO of course. Be lucky!

Like many EUR pairs yesterday, this also formed a shooting star at resistance:



dl.dropbox.com/u/20815047/EURUSDdaily20_12_12.gif

Stops above the shooting star if you please!

Looks like the long view was right:



dl.dropbox.com/u/20815047/EURUSDdaily18_12_12.gif

This made a lovely little backtest of the break above 1.314 yesterday but I didn't take it. Might still be worth a long but stop would have to be below 1.314 so a fair bit away.

Thanks guys. I agree with the long view (long EUR? Are we mad??) since it's broken out of the long term downtrend, the question is at which level?

I'd like the chance to go long where the old downtrend meets the uptrend support on my short term chart below - that would be a good entry but I'm not sure it'll go that low now...perhaps a long at 1.3126 as that's the last high (most recent breakout point) and also the neckline of the inverse H&S...?

Theres a symmetrical triangle breakout as well.
Best place to go long now would be on a re-test of the breakout line roughly at 1.3121 with a 40 point stop.Tartget would be same as ftse80 pointed out. So good risk reward on this.



DYOR

One more try...
Medium term view





Long term view