The Continuation Triangle (1) found in the 60 minute chart shows a good initial trend reading which indicates that the strong downtrend before the breakout was intact.Since the pattern was identified the resistance level (A) however has been broken upwards of 1.6210. This is in line with the upwards arrow (X) direction indicator reflected on the chart.

The 240 minute 3-Point Extension (2) which ended on Monday at 04:00 forecasts price activity upwards of point D between 1.6221 and 1.6693. Price direction is also indicated on (2) by an upwards bullish arrow (Y). Current price movement in this time frame can be seen around 1.6240.

Moving on to the Continuation channel (3) from the daily chart we see that price is around the 1.6140 level support (F). The direction indicator (Z) also shows an upwards arrow. While (3) remains valid, it means that we can expect to see price fluctuations between 1.6140 support and 1.6548 resistance. You can use these levels as a guide for the placement of your take profit and stop loss levels.

Information supplied courtesy of Autochartist. For further information on these and other chart patterns visit www.autochartist.com.

Disclaimer: Autochartist, MDIO Software, agents and resellers of Autochartist services do not guarantee the completeness, accuracy or timeliness of the information supplied. Users of this service should take independent decisions regarding any securities or financial instruments mentioned herein. Trading involves considerable risk: therefore, before trading you need carefully reflect on your risk appetite, investment objectives and level of experience. Do not invest money you cannot afford to lose. Past performance of strategies is not indicative of future performance.

Information and opinions contained contained in this video are for educational purposes only and do not constitute trading recommendations.

Trading OTC Forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange and futures trading, and seek advice from an independent financial advisor if you have any