Ending Diagonal Triangle

Triangle Consolidation Break

Ending Diagonal Pattern

20 sma EUR/USD chart anaylsis
Daily 20 SMA

On the daily chart we see that the Euro moved up into the important price zone of the prior consolidation and the 20 SMA, which both should act as resistance. A bit higher at 1.2588 (not shown) also stands the weekly low from August 2010, which got respected (closed at) two weeks ago and broken last week.

triangle breakout, ending diagonal pattern
1 hour triangle breakout, ending diagonal pattern

Typical 3 wave consolidation

On the 1 hour chart we see that EUR/USD formed a typical 3 wave consolidation (CDE) just before today's breakout. Yesterday, the Euro found support at the apex of the red triangle (C) and today price found resistance at the daily R1 (D) and support at the weekly pivot point (E) where the consolidation pattern terminated and EUR/USD started to move up to break the important consolidation high at 1.2543 (B).

The Euro moved initially up to  the 61.80 % fib extension C-D at E where market temporarily paused before price resumes it's up trend to the 100 % fib extension (F). The Euro is currently trading at daily resistance and the 61.80 % fib extension from A-B at C and the 100 % fib extension from C-D at E (F).

EUR/USD chart analysis
5 min EUR/USD chart analysis

On the 5 min chart we see that the recent 100 % fib extension from 1-2 at 3 also stands at the current resistance zone. We also see that  the Euro paused as it reached the 61.80 % fib extension (C-D at E) (2). Later on market formed a bull flag before price moved up to the confluence resistance zone, where price started to fall back after the creation of the bearish candle (Doji)

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