EUR / USD Potential Bullish Pattern in the works??

by John Knobel


EUR/USD potential Non-failure Swing Bottom? 

A failure swing is a pattern that technical analyst used to enter positions in anticipation of a trend reversal. In other words, a position is taken against the current trend.

  • Buy signals may occur on breaks above points B & D for potential upside move;
  • A technical trader who believes that  a Non-failure Swing Bottom pattern is developing will wait for price to return lower; in this case near to the 1.1105 support area, before opening new long positions for the 1.1404 potential target;
  • Another method that a technical trader may apply is to wait for market confirmation of a break above points B or D before entering new longs;
  • The pattern is deemed incomplete if price fails to hold above point C;  a technical trader may then decide to abandon the idea of entering new longs and open new positions in the direction of the prevailing trend.

Source: FXGM / New York Institute of Finance Technical Analysis of the Financial Markets by John J. Murphy