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  4. EURUSD Extended V bottom on daily time frame

EURUSD Extended V bottom on daily time frame

February 18, 2016 05:47

EURUSD has made the Extended V Bottom on daily chart. The characteristic of this pattern is that the price of the V bottom will form a reversal that is followed by a down-sloping trend line or channel usually in the form of a triangle or pennant.

Extended V bottom on the EURUSD chart has been very distinctively followed by a bullish pennant that broke to the upside making its target at 1.1376. My previous EURUSD analysis showed that 1.1085 was indeed a very strong support and the price has been rejecting 1.1130 last 3 days. That is because price sits at H5 – previous resistance, now support that holds the price from falling further. Should 1.1085/H5 break to the downside than we could see 1.0980 - the POC zone (L4, EMA89, Bullish pennant breakout) where next bounce is expected (breakout-retest on daily time frame) towards upper Extended V bottom target 1.1370.

Please note that this is daily chart so watch for daily candles, bounces off 1.1130/1.1085 and if 1.1085 breaks, downtrend towards 1.0980.

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