EURUSD’s bounce from 1.3033 extends to as high as 1.3212. However, the rise is treated as correction of the downtrend from 1.3385, another fall to re-test 1.3003 support would likely be seen after correction, a breakdown below this level will signal resumption of the longer term downtrend from 1.3486 (Feb 24 high), then deeper decline towards 1.2624 (Jan 13 low) could be seen.
Archive for the ‘Technical Analysis’ Category
We use price channel for our forex analysis frequently. Here is an example in August. EURUSD fell from 1.2908 and tested the price channel in August 9, the fall is limited by the price channel and rebounded to 1.2908 area in August 10.
How to draw a price channel
1. Run MetaTrader and press the “Equidistant channel” button on the tool bar.
2. Draw the first line from A to B.
3. Move the second line to C.
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