EUR/USD (daily chart as of July 7, 2015) has been trading in a large triangle since early February (between the bold red and blue trend lines on chart). It appears that current price is trading below the lower edge of the large triangle range. Watch closely the price action against this lower edge for the following trading sessions.
Guest post by Diane Ming
Note also that current RSI is approaching an uptrend line connecting the April 13 low and the May 27 low. If the RSI breaks down below this support line with follow-through confirmations, the pair could decline further to test previous lows around 1.0820, and then 1.0660, 1.0570 levels.
To the upside, if the price can hold the lower edge of the large triangle range and the RSI uptrend line support remains intact, the pair could trade higher to test 1.1280 level, and potentially to challenge the upper edge of the large trading range. Note that the 200-day EMA is approaching the upper edge of the large triangle range, which makes a potential resistance confluence (gray circle on chart).
Support levels:
S1: lower edge of the triangle range
S2: 1.0820 (May 27 low)
S3: 1.0660 (April 21 low)
Resistance levels:
R1: 1.1280 (June 29 high)
R2: upper edge of the triangle range or 200-day EMA
R3: 1.1680 (January 21 high)
Post by Diane Ming, Contributing Author on InvestingTeacher.com. She is an Affiliate Member of the Market Technicians Association (MTA).
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