Wednesday, May 23, 2012

EUR/USD May 23, 2012 Down Trend Channel





A down trend line represents the upper boundary of a down trend channel appears easily on both the daily and the weekly  EUR/USD chart.

The upper boundary trend line formed by joining the highs of the three candlesticks of  the following days trading:

1- August 29, 2011 with high value 1.45480.

2- October 27, 2011 with high value 1.42470.

3- May 1st, 2012 with high value 1.32830.

The lower boundary parallel line is formed by joining the lows of the two candlesticks of the following days trading:

1- October 4, 2011 with low value 1.31440.

2- January 1st, 2012 with low value 1.26230.

The break of the upper boundary upwards will be a buying opportunity , and will be more confirmed if the price retest the trend line as a support after breaking it upwards.

But the more likely scenario is that the price action will reach the lower boundary , cause their is no bullish indication appears to me , technically of course. 

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